Here are twelve things you need to know about your VA loans:
1. They’re reusable. As long as you have paid off your VA loan, you can use your full entitlement again.
2. Only certain types of homes can qualify for your loan. Many “fixer-upper” types of homes or businesses may not qualify. If it is a move-in ready home or condo, you should be ready to go.
3. The loans are not for recreational “camps” or vacation homes or investment properties. They are designed to provide a primary residence for you.
4. The VA does not give you the money. What the VA does is to guarantee the qualifying mortgages.
5. The loans are guaranteed by the federal government. This gives veterans good terms and rates in their loans, because the USA government guarantees about a quarter of the loan and reduces risk to the lender.
6. If you are putting less than 20 percent down, you do not have to pay mortgage insurance. The VA’s guarantee saves veterans money each month by eliminating this premium.
7. There is a mandatory fee. It may run about 2 percent of the loan amount. This is the VA Funding Fee. It helps keep the program running for you and other veterans.
8. There is a limit on co-borrowers. Many mortgages will let you get a loan with about anybody. Usually the co-borrower needs to be a spouse or another veteran who will live in the house with you. Check with your lender for restrictions.
9. They are available even if you have a history of foreclosure or bankruptcy. You can still use your VA loan benefit.
10. They do not carry a prepayment penalty. You can make extra payments any time you are able. Even if you can only apply a little extra cash to paying off your mortgage each month, you can pay off the mortgage years earlier and save thousands of dollars.
11. After establishing that you are eligible, you will need a Certificate of Eligibility (COE). The COE verifies to the lender that you are eligible for a VA-backed loan. The U.S. Department of Veterans Affairs website can help you determine what forms you need for your particular military service experience.
12. See your lender to get a preapproval for your VA loan as a first step. Then you are ready to make an offer when that dream home becomes available.
Please call Grove City Realty if you have questions. We help buyers work with lenders everyday. Let us help you find a great home at a great price. This article is a brief summary. Check out these websites and your lender for information suited to your unique situation.
We thank you for your service to our nation.
Thanks to the following websites for information: usaa.com www.benefits.va.gov veteransunited.com