Benefits of a VA Loan
According to the Veterans United Network, VA loans have helped more than 21 million service members become homeowners. VA loans have more flexibility than most loans, including no-down payment and the ability to be reused.
That’s right. As long as you pay off your loan each time, you are eligible to reuse it. However, VA loans are primarily used for residential income, so you cannot use it for investment properties or vacation homes.
A common misconception is that VA loans are issued by the VA.
False.
The VA instead, provides a guaranty on each qualified mortgage loan meaning that they’ve agreed to pay a portion of the loan in the event that you default.
Pooyan Fard, Sr. Loan Consultant has kindly written below more information on how a VA loan will benefit you if applicable.
You probably have heard of VA loans but in order to help you better understand the benefits, here is a brief overview for your reference:
To help the Service Members, Veterans and eligible surviving spouses, with the loans, the U.S. Department of Veteran Affairs (VA) guarantees their mortgage loans. VA loan may be issued only by qualified lenders.
Here are some more details:
VA requires certain amount of length of service or service commitment, duty status and character of service determine your eligibility for specific home loan benefits and issue you a certificate of eligibility (COE). This certificate could be obtained directly from the VA official website or if you provide you DD2014 paperwork, your loan agent can get it for you.
Because VA loans are guaranteed by the VA there will be no need for mortgage insurance even if you put 0% down. There is a funding fee intended to enable the veteran who obtains a VA home loan to contribute toward the cost of this benefit, and thereby reduce the cost to taxpayers and it will be determined based on the down payment borrowers are planning to put down. The COE might specify that the Veteran is exempt from the funding fee and in such cases VA loans can go up to $1,500,000 even with zero percent down!
Additionally, one should note that VA loans work for Single Family Homes, Site condos (Townhomes with no Common Walls) or VA approved Condos and it can be used for both purchase and refinance.
Please feel free to contact me in order to find out if you qualify for this great loan program.
