Top Five Questions We Get About VA Home Loans
How much do we know about VA home loans? A lot! As a team that specializes in helping military families, we get questions all the time. So much so, there's not enough room to cover it all here! So we've narrowed it down to the top five questions we get asked regularly by our active-duty military and veteran clients.
Am I eligible for a VA home loan?
The answer is YES if you are a:
- current service member (having served at least 90 continuous days)
- veteran (if you meet the minimum active-duty service requirement based on when you served)
- surviving spouse of a veteran
That being said, there is still an application process to make it official. And depending on your current status, you'll need to provide a number of documents or other details. Don't worry! Earl and our team can guide you through the entire application process and help you choose which type of home loan is best for you.
What advantages will I receive with a VA home loan?
The biggest benefit of a VA home loan is the ability to purchase a home with no down payment! In addition, you'll enjoy low interest rates, limited closing costs, no Private Mortgage Insurance (PMI), and the benefit lasts a lifetime (meaning you can use it multiple times). Keep in mind, you may need to pay a funding fee if you're using the loan to buy, build, improve, or repair a home or to refinance your mortgage. This can be rolled into the loan in most cases though, so it's not typically paid out of pocket.
Can I use a VA home loan on my investment property or a vacation home?
If you're not a first-time home buyer, you can still benefit from a VA home loan. And even though you can use your loan multiple times, it's for your primary residence only. The homes also need to be located within the US and be evaluated by a VA-approved appraiser, to ensure it meets the minimum requirements. That can eliminate some fixer-uppers as these loans are mainly for homes that are move-in ready.
Is there a limit on how much I can borrow?
The short answer? No. There is no limit to how much you can borrow to finance a home. The only "limit" to be aware of is the amount the government will guarantee/pay to your lender if you default on your loan. According to va.gov, if you have full entitlement, you don't have a limit. But in that situation, most lenders won't go without a down payment. On the other hand, if you do have remaining entitlement, your limit is based on where you live (the county loan limit). And you can purchase above that limit, but a down payment is required.
I have a history or bankruptcy or foreclosure, am I disqualified?
Not exactly! You can still qualify for a VA home loan. Although, you may experience a waiting period depending on the details of your financial history. But this delay is nothing compared to the years it can take to qualify for a conventional loan. Typically, these situations are reviewed on a case-by-case basis, so provide as many details as possible so our team can help guide you through the qualification process.
Helping veterans and their families navigate through the VA home loan process is an extremely rewarding part of our job. With help from our preferred lending partner, OVM Financial, we are confident our team will give you the best buying options to choose from when you're ready to purchase a home. If you have more questions, please don't hesitate to call or text Earl at (757) 329-9854.Posted by Earl Sanders on