A VA (veteran affairs) home loan is a type of mortgage loan that aims to make it easier for eligible veterans to pay for their homes. It originated in 1944, and over the years, has helped thousands of veterans fund their housing needs. In this article, we’ll go over some of the reasons this type of loan is so beneficial, and why it might be the best option for you. Let’s begin.
Guide to Understanding VA Mortgage Loans
- They are affordable upfront and in the long-term. When financing a home with a VA loan, you won’t need to pay the down payment and the mortgage insurance rates are usually much lower than other types of loans. This means that you can more easily afford a property.
- They are available in different terms. VA housing loans are offered by different banks, credit unions, and mortgage lenders. Each one may have different policies in terms of fees and rates, so you can apply for one at an institution that is suited to your needs.
- They are versatile. A VA home loan can be used to purchase a new house, apartment, condominium unit, mobile home, and any other type of real estate. You can even use one to refinance an existing mortgage or make renovation and construction projects in your current home.
- They have less stringent requirements. While they’ll require complete documents such as credit history and income statements, VA lending requirements are generally more lenient than other types of loans. This is mostly because the federal government can guarantee lenders their payment in case you default on the loan.
- They are transferable. Many VA housing lenders will let you transfer the loan to someone else who meets the eligibility requirements. They are assumable mortgages, which can prove to be useful in the future in case interest rates suddenly rise.
- They make it easier to resell the home. If you decide to sell the financed home before the VA home loan has fully matured, you won’t have to pay a penalty in order to do so.
Who is eligible for a VA home mortgage loan?
American veterans, currently serving military personnel, reservists, and surviving spouses of past soldiers (who do not remarry) are all eligible for a VA home mortgage loan. However, there is usually a minimum number of days of service required by many lenders, and some will take into account the duty status and character of service.
Specific documents are also needed to apply. These include but are not limited to the following: Income statements for the past two years, statement of assets and liabilities, tax records, and military-specific certificates.
If you decide to apply for a VA home mortgage loan, take the time to compare your options. Approach multiple VA-approved lenders to find the best rates. The best ones can also help you acquire some of the requirements needed.
You may also want to consult with a mortgage broker for expert advice. They’ll be able to help you throughout each step of the process and can give you a better understanding of the more complicated aspects.
If you’re looking for a professional broker to help you get a VA loan in Los Angeles, please don’t hesitate to call us on (818) 601-2231 today. We’re happy to help!