Let’s talk VA loans. There are a lot of veterans out there or folks with veteran family members, and a VA loan offers a fantastic opportunity to get into a home for you vets.
Of course, there are service requirements. But the basics are that if you have served for 90 consecutive days or more, you likely qualify for a VA loan.
See the official qualifications here.
There are a few VA loan types, so you are not locked into a single product once you get your loan.
There is your purchase loan. This provides service members the option to purchase a new home. Rates are usually very competitive. VA loans are generally zero down and do not require mortgage insurance.
There are options for refinancing as well. There is a cash-out refinance option, and an Interest Rate Reduction Refinance or streamline refinance loan. All of the same VA qualifications apply to these loan programs.
There are a few things you should know about VA loans.
In addition to the military service requirement, VA loans are for primary residences only. If you are trying to purchase an investment property, you’ll want to look at other loan programs. You can, however, buy a multi-unit property (up to a four-plex), but you do have to live in one of the units as your primary residence.
The government may guarantee VA loans, but they are not issued by the VA. The VA typically guarantees up to a quarter of the loan amount. This gives lenders confidence and helps service members secure greater terms and rates.
One of the best benefits of a VA loan. No Mortgage Insurance.
On any conventional loan without a down payment of at least 20%, you will be assessed mortgage insurance. And because the government guarantees VA loans, that requirement is irrelevant for these loans.
VA loans can be an incredible benefit to you if you qualify. We aren’t lenders here, but we know a lot of the lenders here in the valley and can help put you in touch with someone to talk you through the best options for you and your family for your home purchase.
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