VA Loan Benefits
Today, we're talking about utilizing your VA benefit to buy a home. Stay tuned to the end, it's a hot list.
Top 10 things you need to know.
Today's edition is about the top 10 things the military community needs to know about a VA loan.
#1) No down payment, no mortgage insurance.
A lot of borrowers who are putting less than 20% down with FHA and conventional loans, they have a mortgage insurance payment that they have to make on a monthly basis until they get to that 20% equity stake in their property. Not with a VA loan.
#2) Your benefits can be used again and again.
If you have a property that you purchased utilizing a VA loan and then you pay that property off through selling it, once you've paid off all of that loan, then you can turn around and utilize your VA benefits again to buy your next property. You can even utilize your VA benefits one more time if you've paid off a VA loan previously, you still own that home, so you keep that home, and then you want to purchase another one. They'll give you a one-shot deal on that, as well, so you get to do that one time with the VA loan.
#3 your VA benefits never expire.
Whether you utilize your benefits to purchase a house this year or in 20 years, as long as you're in good standing with the VA, you can utilize those benefits whenever.
#4) Surviving spouses may be eligible to utilize their spouse's VA benefits.
There are stipulations to this. Typically, you have to be UN remarried to utilize your fallen spouse's VA benefits, but it is a possibility. Make sure that you check with the VA and also with your loan officer to see if that can happen for you.
#5) The VA's got good rates.
They're usually about a quarter of a percent lower than what you're getting these conventional and FHA loans for.
#6) VA loans are available through your local lenders.
The VA provides insurance to lenders, they don't originate the loans.
#7) It's more than just home purchase loans.
You can refinance and do cash out refinances, as well. As I said before, the rates are lower and typically, they make you jump through less hoops. A lot of times you don't have to show a new W2, there's no appraisals, you don't have to show your pay stubs. You don't have to print out your bank statements, including that last blank sheet that says nothing on it but if you don't include it, they still say, "Your file's incomplete." None of that. As I said before, they offer cash-out refinances, as well.
#8) The VA works with people who don't have all the criteria that FHA and conventional loans are looking for, as well.
This is people with lower credit scores, people with bankruptcies or foreclosures on their record, the VA can work with you, as well.
#9) If you're a member of the military community and you are on disability, you may be able to get that funding fee weighed.
In lieu of making a down payment, the VA will charge a funding fee to most people. That funding fee can be as low as 0.5% and can go up as high as 3.3% of the purchase price. If you are a vet or someone in the military community who is on disability or receives disability or has a disability status, you may be able to get this fee waived.
#10) You can buy a condo with a VA loan.
Typically, people think it's only for single-family detached homes or for townhouses, but you are able to go and purchase a condo, as well. There is one stipulation with the condos, it has to be on the approved condo list. There's a website for it or you can just tap in, ask your loan officer, ask your lender and they can check for you, as well. If you've never purchased a home before and you have questions to what the process is like, make sure you check out the videos on my YouTube channel here.