A VA loan is the most flexible home loan program, which can be helpful when purchasing a home. American veterans, military members currently serving in the U.S military, and surviving spouses can benefit from a VA home loan. This program does not require down payments, mortgage insurance, or a minimum credit score, making the VA home loan the most beneficial home loan program on the market. VA home loans are helpful for brave military members who are disabled due to service-related injuries. VA home loan gives a borrower the ability to build or buy a home. VA loans are much easier to qualify than a conventional mortgage loan.
5 Things You May Not Know About VA Home Loans
Below is the essential information you may not know about VA home loans.
1. VA Loans Can Be Taken Out Multiple Times
Veterans can take out VA loans as many times as they need as long as they can pay off each loan. They can also obtain a new VA loans even if they are currently going through a foreclosure. There is no limit on the number of times a veteran can use the VA home loan program. This benefit lasts a lifetime for those who are currently working or have worked in the U.S. military.
2. VA Loans Are For Certain Types of Homes
VA home loans are not for buying a working farm or a fixer-upper. It’s primarily made for move-in ready properties, which include single family homes, condominiums, modular housing, and multi-unit properties.
3. VA Loans Are For Primary Residence Only
Those who are purchasing homes with VA loans are not allowed to rent out the property because United States Department of Veterans Affairs has established the primary occupancy rule for those who qualify for VA home loans. The borrowers have to certify that they will use the property as their primary residence. Borrowers cannot purchase summer homes or investment properties with a VA loan.
4. VA Home Loans Are Not Issued by the United States Department of Veterans Affairs (VA)
The VA is not a direct lender and it does not issue VA home loans. The VA loan is made through a private lender and guaranteed by the VA.
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5. VA Loans Are Guaranteed By The VA
A VA guaranteed loan is a home loan that is made through private lenders like mortgage companies to eligible veterans and are guaranteed by the VA. The lender is protected against loss if the borrower fails to repay the loan.
If you’re an American veteran, military member currently serving in the U.S military, or surviving spouse looking for a home loan, Drew Mortgage Associates, Inc. can help! Drew Mortgage Associates, Inc. is a mortgage company in MA that can help provide you with a VA home loan with a low-interest rate or reduced term. Our home loan officers are highly trained professionals who will guide you throughout the home loan process. Drew Mortgage Associates, Inc. is the most preferred mortgage lender in MA. What are you waiting for? Call Drew Mortgage today!