A VA home loan is one of several common loan programs you can use when buying a house. You cannot use this option unless you have military experience, and you must be able to get a letter that proves it. If you have military experience, you can reap a lot of great benefits from this loan type. Here are some of the top perks of VA loans that you might want to know about as you begin looking for a loan to purchase a house.
The VA Does Not Issue the Loan but Plays a Vital Role in the Process
The VA is the Department of Veterans Affairs. This entity does not issue loans to people who want to purchase homes. Instead, they back the loans when lenders issue them. Backing the loan provides security to the lender, as they know the VA will pay the loan balance if the borrower defaults. If you want to get a VA loan, you must visit a mortgage lender that offers VA home loans to begin the process.
You Can Get One if You Had One in the Past
Secondly, you can apply for a VA loan even if you had one in the past. People that qualify for VA loans can use them over and over. There is no limit on the number of VA loans you can get during your lifetime. You can only get one VA loan at a time, though.
You Will Not Have to Pay Mortgage Insurance
One of the biggest perks you will discover with VA loans is they do not require paying mortgage insurance. Mortgage insurance is something you pay with conventional loans when you borrow more than 80% of a home's value. You will never pay mortgage insurance with a VA loan, which means you might be able to buy a more expensive house than you thought.
You Do Not Need a Large Down Payment
Finally, you will not need a large down payment to buy a house with a VA loan. You might acquire a lower interest rate if you can put some money down, but you do not need a lot. Many people buy homes with VA loans without putting any money down on the purchases. You can ask your lender about this if you have questions.
As you can imagine, these are only some of the perks that VA loans offer. If you are interested in learning about others, talk to a lender today.Share