VA loans are a type of home loan issued to Veterans by private companies that are guaranteed by the U.S. Department of Veterans Affairs. If you have served and obtained eligibility, it is definitely worth looking into using a VA loan for the purchase of your new home. Consider the following facts as you decide if a VA Home Loan is right for you.
That’s right. With a VA home loan, you do not have to put any money down whatsoever. This is one of the greatest benefits and favorable terms like this are the reason so many Veterans use such loans.
Most lenders require payment of mortgage insurance if the initial down payment is less than ~20% of the value of the home. As established, however, VA loans do not require any down payment at all. Correspondingly, there is no need for private mortgage insurance either. This leads to a lot of money saved down the road.
If you decide you no longer want to stay in the home you purchased using a VA loan, there will be no monetary penalties or fees, regardless of the time that you decide to sell the home. There are also no restrictions on refinancing homes bought using a VA loan.
Eligibility for a VA home loan never goes away. Once you are eligible, you can use it all throughout your life. In order to use a VA loan again, one must sell their current home or pay it off in full. From there, the prospective buyer is provided all the same benefits yet again.
If you plan to use a VA loan to purchase your new home, don’t limit your search! You are eligible to use the loan for single-family homes, homes of up to four units, manufactured homes and even condominiums. Consider all these options as you look to purchase your first home.
Naturally, avoiding foreclosure is important to any homebuyer. The U.S. Department of Veterans Affairs is there to try to make sure everything is done to help Veterans retain their homes. Thousands of veterans are able to restructure their mortgages every year thanks to VA, solidifying VA loans as one of the best low-risk purchase options available.
Clearview Realty is experienced when working with VA Loans, and can help veterans and their families when navigating the home buying process. Give us a call today at (720) 217-5731 to learn more.