If you’re anything like me, the average veteran, you know nothing about the VA loan as a whole. Sure, you understand that you’re entitled to benefits and that dealing with the VA can, in some instances, be a complicated matter, but shouldn’t you take it upon yourself to better understand a program that’s been around since 1944?
It’s time we all became a little more knowledgeable when it comes to using one of our most important and most useful benefits—the VA home loan. As such, here are eight simple facts about the VA loan that you probably didn’t know.
A home isn’t just where the heart is, it’s also where you’re entire body is required to be if your using a VA loan. VA loan benefits are for primary residences only, so don’t even bother looking into investment properties or vacation homes.
The VA loan is designed for single family homes that are move-in ready upon purchase. If you’re into house flipping or that farm out in Ohio that just needs a little work, you may not looking to use a VA loan.
The VA’s guaranty eliminates the need for mortgage insurance. When you use a traditional loan, you’re required to carry mortgage insurance if you haven’t put at least 20 percent down. Speaking of not needing 20 percent down…
There’s no down payment necessary for a VA loan!
If you’ve suffered a bankruptcy or foreclosure, you can still secure a VA loan. It may sound silly, but if you contact one of our Certified Military Residential Specialists, we can get you on track!
Co-borrowers have limits when it comes to a VA loan. You may only use a co-borrower that is either your spouse or another eligible veteran; and they have to live in the home with you.
Do you ever get those big income tax returns and just have no idea what to do with them? (This is probably the silliest thing I’ve ever written.) Well, you’re in luck. There is no penalty for paying your loan off early. Making extra payments over the life of your loan can save you interest and tons of time.
And finally, you can use them more than once. As long as you pay off the loan each time, you have access to your full VA loan entitlement again and again. If you remember to keep your home as your primary residence, and you sell it off when you’re done, you can be a globetrotter!
Photo courtesy of Steven Martin / Flickr
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