It can be overwhelming to be able to buy a home that is hard-earned. And the feeling can intensify exponentially when you’re a veteran or are serving in the military.
Having said that, it is pretty tough for ordinary folks to reach such a point in their life. The challenge is far more tough for veterans and military-men. So, the question is, can you still buy a home?
The answer is yes, of course, you can. You have a choice to mortgage your home in order to own it. And specifically, when you are a veteran you may be eligible for a VA Loan.
But, then again, the question is…
What is a VA Loan?
The simplest definition for a VA Loan is, it is a mortgage loan issued by private lenders and backed by the U.S. Department of Veterans Affairs to help former and active members of the U.S. Army buy a home for their families.
Now, the question comes…
Are you Eligible for a VA Loan?
A VA Loan is an unconventional loan differing from other regular mortgages in terms of the support from the U.S. Government. In other words, the government agrees to repay a fraction of the loan in case you miss out on repayments or face foreclosure.
The eligibility criteria for VA Loans mandates the military personnel to meet specific service requirements.
- If you are an active serving member of the army or have been honorably discharged veteran. You must have either served for 90 days consecutively during wartime or 181 days during peacetime.
- If you have served for over 6 years in National Guard or selected reserve.
- If you are a widow of a veteran who died on the line of duty.
Additionally, you’d need a Certificate of Eligibility to prove the lenders that you are qualified for a VA Loan. You can apply for the certificate very easily through the VA website, or by email, or through your lender, as well. Apart from this, there are a few other charges that you need to pay. Bruce Glassinger from VA Loan Lending explains that an origination fee is the fee a lender charges at the beginning of the process of getting a loan. Basically, these charges include processing fees and any other miscellaneous expenses needed to initiate your loan procedure.
But you need to know how can you benefit from a VA Loan!
Since VA Loans are backed by the U.S. Department of Veterans Affairs, having a VA Loan can benefit you in many ways. Let us explore some of the common benefits that you can enjoy.
- You can practically buy a home with absolutely zero down payment or initial deposit.
- You have the option to borrow any amount, but there is a liability limit put up by the VA to the portion the government pays.
- You can escape private mortgage insurance.
- You’re not required to meet any minimum credit score.
- You can seek assistance if you are struggling to pay and facing a potential foreclosure.
- You are not required to pay any pre-closure penalty.
- You can take multiple VA loans.
- Your eligibility is not affected by your loan history.
Having known what is a VA Loan, and how you can enjoy its benefits, you should consider consulting with a VA Loan Firm before buying your home.