4 Things You Need To Know About Taking Out A VA Loan
Posted on: 14 October 2018
Veterans Administration loans are a popular mortgage option for those who are looking to buy a home. If you have ever served in the United States military or are currently serving in the military, you may be eligible for this beneficial type of loan that comes with no down payment requirement. Before you apply for a VA loan as part of your next home purchase, there are a few things you should know.
You Can Use Them More Than Once
One of the most common misconceptions people have about VA loans is that you can only use them for your first home purchase. In reality, however, there is no limit to the number of VA loans that a person can take out, so long as they are one at a time and as long as he or she continues to meet the eligibility requirements.
You Can Get One Even With a Foreclosure
If you have a foreclosure on your record, there's a good chance you'll have a difficult time getting approved for standard mortgages and other types of loans due to the impact a foreclosure can have on your credit. With a VA loan, however, foreclosures are not held against you and you can still borrow the money you need to take out a home loan in most cases.
They're Only For Primary Residences
One of the most important requirements to keep in mind if you're considering a VA loan is the fact that they're only allowed to be used for primary residences. This means you'll need to live in the home full-time. You cannot take out a VA loan to pay for a vacation home, a home that you plan on flipping, or any other type of property.
They Don't Require Mortgage Insurance
Unlike standard mortgages that require mortgage insurance if you put less than 20% down on your new home, a VA loan does not require any kind of mortgage insurance—even if you don't put any money down on your home. This can save you a nice chunk of change when it comes to your monthly mortgage payment.
Overall, VA loans are a great mortgage option for those who have served in the military and are looking to purchase a home. The terms are fair, and with no down payment required and no mortgage insurance, it is possible to get your dream home without much money up-front at all.
For more information, reach out to companies like Unity West Lending.
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