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As a real estate agent, I’m here to tell you about one of the best benefits available to members of the U.S. military and their families: VA home loans. These loans provide flexible, low-interest mortgages that are specifically designed to help active duty and veteran service members achieve their dream of homeownership. In this article, we’ll explore the many benefits of VA loans, as well as some important details you need to know before applying.
No Down Payment or PMI Required
One of the most significant advantages of a VA loan is that lenders do not require a down payment or Private Mortgage Insurance (PMI). This means you can purchase a home with zero money down, which can be a game changer for many families. Additionally, you won’t have to worry about private mortgage insurance, which can add significant costs to your monthly mortgage payments.
Funding Fees
While VA loans don’t require a down payment, there is a funding fee that is charged. The fee is a percentage of the loan amount which is there to help offset the program’s cost to taxpayers. However, you can get the VA funding fee waived altogether if you have a VA Disability. This fee can be paid upfront at closing by either the buyer, seller, or it can be rolled into the loan!
Certificate of Entitlement
To apply for a VA loan, you’ll need to check your Entitlement status and receive your Certificate of Entitlement (COE). If you currently have full entitlement, there are no loan limits, and you may borrow as much as you can qualify for. To check your entitlement status, visit VA.gov where you can request a VA home loan Certificate of Eligibility today.
Other Facts About VA Loans
Here are a few other important details to keep in mind:
- You can have more than one VA loan at a time.
- If you are receiving disability benefits from VA, you can get a reduction or elimination in the funding fee.
- You can refinance other loan types into a VA loan and remove PMI.
- The funding fee is always paid at closing by the buyer, seller, or it can be rolled into the loan.
- You must live in the property for at least one year before you can rent it out.
- A VA loan can not be used for vacant land.
- You can use a VA loan to purchase a multi-unit property as long as you live in one of the units.
Get in Touch
If you’re interested in learning more about VA loans, please don’t hesitate to get in touch with me. I can put you in touch with one of my top lenders who works with VA loans. With a VA loan, you can achieve the dream of homeownership with flexibility and affordability. Let’s work together to make it happen!
To learn more about how the VA Home Loan process works, click this link to be taking to the VA.gov’s website which outlines the process and steps you need to take.
Want to learn about other common types of home loans? Click on this link!