A VA loan is a mortgage loan that any active or veteran military member can apply for. There are many benefits of applying for this type of loan that you may not realize are available for you to take advantage of. Here are five things you may not know:
- You Don't Need a Down Payment: On any typical mortgage loan, the lender will usually want you to put a down payment. With a VA loan, you won't have to put a down payment, which can allow you to purchase a home more quickly since you won't have to save up for a down payment on the house. Of course, you can still put a down payment if you have it, which will allow you to receive better terms on your loan, but not having to put one down can definitely be helpful if you are looking to move quickly.
- You Need a Lender: The VA loan is simply the loan type that you apply for. There is no VA loan lender. Instead, you will have to choose a lender to work with who will help you apply for the VA loan and receive the best possible terms.
- A Widowed Spouse Can Apply: Not only are active and veteran military members eligible to apply for a VA loan, but a widowed spouse to a veteran or active military member can also apply so long as they have not remarried in many cases. Many windowed spouses are not aware of this significant advantage that they can take use even after their spouse has passed.
- You Don't Need Mortgage Insurance: On top of not being required to put a down payment on the loan, you also don't need mortgage insurance like you would with a normal mortgage loan. The advantage of this is that it lowers your monthly costs on your purchase of a home.
- It Must be Your Primary Home: When you apply for a VA loan, it has to be for a home that is going to be your primary residence. You cannot use this type of loan to purchase a second home, for example. You also cannot rent out the property while under the terms of a VA loan either.
When you know these five things about applying for a VA loan, you can better understand how it works, how to take advantage of it, and whether or not it is the right choice for you when it comes to purchasing a home.Share