Learn About VA Loans

When it comes to buying a home, there are many options available to you. One option that is often overlooked is a VA loan. VA loans are specifically designed to help veterans and active-duty service members achieve the dream of home ownership. If you're considering using a VA loan to purchase a home, we have provided some of our most asked questions below.

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Becoming A Homeowner With A VA Loan

If you are a United States military veteran or a current service member who is interested in becoming a homeowner, there is an excellent mortgage option available to you. The United States Department of Veterans Affairs, or VA, offers a loan that is intended to help military service men or women and military veterans purchase a property. If you have served or are currently serving in a branch of the United States military and looking to buy a home in the area of Los Angeles, California, Shannon Christenot is here to help. Continue reading to learn more about becoming a homeowner with a VA loan.

VA Loans: Essential Information

VA loans were initially created during the second World War to help service members returning from war the opportunity to buy a home for their families. Even to this day, they continue to help military veterans and active service members the chance to be a homeowner by having a zero down payment, low interest rates, and flexible credit requirements. Although VA loans can be issued by a private lender, they are insured through the Department of Veteran Affairs. Therefore, these private lenders are guaranteed to be paid back by the government if a borrower cannot pay off the loan. This process enables private lenders to offer extremely favorable loan rates and terms.

The Advantages Of Buying A Home With A VA Loan

Obtaining a VA loan to purchase a home offers a variety of benefits to a borrower. To begin with, for most qualified homebuyers, a down payment is not required and VA loan interest rates are generally much lower than traditional loan types. Additionally, there are no penalties for paying off your mortgage early with a VA loan, so there are no penalties for prepayment of a mortgage, and although closing costs will be required, they are usually substantially lower than traditional closing costs. There are also VA loan advisors available to help guide borrowers who find themselves unable to make their loan payments, there are options for avoiding home foreclosure, and there are no loan limits for borrowers that qualify. VA loans do not require a borrower to pay for private mortgage insurance, (PMI), and these loan types also can be refinanced for a better rate or term.

Requirements For Obtaining A VA Loan

To qualify for a VA loan, some typical loan requirements include:

  • A borrower must be an active military service member, or
  • A borrower must be a military veteran, or
  • A borrower must be an active National Guard service member with at least 6 years of experience, or
  • A borrower must be the single spouse of a veteran that has passed away during military service or from an injury as a result of service.

If you are interested in buying a home with a VA loan in Los Angeles, California, contact Shannon Christenot for a consultation.