Thank You Heroes – Helping Heroes Buy and Sell Homes –

FAQ | VA Home Loans

What is a VA Loan?

The design of a VA loan is intended to help service members, veterans, and eligible spouses obtain a mortgage, even if they might not be able to via traditional means. These loans are designed to have more favorable and flexible terms than a traditional loan might. This is meant to be a sort of “thank you” to the service members, veterans, and their families for the service that they have provided to the country.

VA loans are offered by private lenders, but the VA guarantees a portion of the loan. This makes it possible for the private lender to provide the borrower with more favorable terms.

Who is Eligible for a VA Loan?

As already mentioned, only certain groups of people are eligible for something like a VA loan or a VA rebate. It is open to the following groups:

  • Active duty service members
  • Veterans
  • Surviving spouses of veterans

Certain minimum eligibility requirements must be met, even for those who fall into these categories. Before assuming you are eligible for a VA tax rebate or other special offers, ensure you meet all the eligibility requirements. These include

  1. Military Service
  2. Length of Service
  3. Honorable Discharge
  4. Creditworthiness
  5. Certificate of Eligibility (COE)

What are the Benefits of a VA Home Loan?

There are many reasons to be excited about a VA home loan. They contain numerous benefits to them that you should not overlook. A few of the benefits that you can count on when applying for a VA home loan include:

  • No down payment is required to receive the loan
  • Interest rates are lower than what you can get with a traditional mortgage
  • Closing costs are contained
  • You can avoid private mortgage insurance (PMI)
  • The possibility of obtaining a VA tax rebate

These are all ideal benefits that you can take advantage of if you qualify. This may help propel you into homeownership. That can help you build your net worth and help create an easier life for yourself.

What if I’ve used a VA Home Loan Before?

It is only possible to use a VA loan for your primary residence. That said, it is possible to have 2 VA loans if you can demonstrate that both properties are being occupied by yourself and your family. You cannot use a VA loan to purchase a property that you intend to use for investment purposes. These loans are designed this way because they have more favorable terms for the borrower. Therefore, they are limited to purchasing a property that is intended to be used as their primary or secondary residence.

Check up on the paperwork necessary in your area to see if you might also be able to pick up a VA tax rebate if you have already used at least one VA loan before. You can get money back on your taxes and add this to the list of benefits that you can receive when you decide to use a VA loan to purchase a property for yourself.

Are There Closing Costs Associated with a VA Loan?

There are only a limited number of closing costs you have to concern yourself with regarding a VA loan. In some cases, you can even get a VA rebate for the full amount of any closing costs that you did have to pay. For the most part, it won’t be necessary to pay those closing costs at all. Keep this in mind as you think about the ways that you can best position yourself for success with getting the types of mortgages that you require. You deserve a break for the service you have provided the country, and a VA loan is a great way to make that a reality.

Image Credits: Vitalii Vodolazskyi // Shutterstock

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