Ten things you need to know about before using a va loan to buy a house
Are you a service member? Would you like to be a homeowner one day? If your answers to the above question were both yes and you want to take out a mortgage to acquire your dream home, then the VA loans might be the best deThe loans have several unique advantages and limitation that not even some of the longest time VA borrowers are aware of.al you are going to get for real. And so if you are planning on taking out one of these loans you should pay attention to this article as it sheds light on some facts you might want to know before applying for these loans. To have your loan approved, you have to fit in properly with all the requirements anyway so this here article should help you achieve that milestone too if you will.
The 10 things about using a va loan to buy a house that every serviceman should know;
- VA loans are not issued by the VA
One of the most important things you need to get about VA loans is that they are not issued by the agency but by other lenders and that the agency only provides a guaranty on qualified loans.
- VA loans are reusable
This means you can use your entitlement over and over again to borrow as long as you pay off the previous loans.
- The government will guarantee your loan
Since the government guarantees up to a quarter of your loan, your lender should give you great rates and terms.
- VA loans can only be issued for primary residences with exceptions
- Bad credit history don’t matter
Yes, you can take out these loans even with foreclosure and bankruptcy history.
- There is a funding fee that is mandatory
- There is limited co-borrowing allowed
If you are planning on co-borrowing with your spouse or another veteran with entitlement to VA loans, then this is the right program for you. Otherwise, you will have to pay a hefty down payment, and most lenders don’t allow it all together.
- There is no prepayment penalty
- Only apply to certain types of homes
- You do not need mortgage insurance