6 Facts About VA Loans
Jan 09, 2017
While more and more veterans are taking advantage of the benefits VA loans offer, some veterans are not familiar with all of the program’s unique benefits and quirks. Do you think you are eligible to qualify for a VA loan? Learn more about the program below.
Home Loans for Veterans
1. Active duty members typically qualify after 6 months of service
Almost all military personnel, veterans and National Guard members are eligible for VA loans. It’s important to note that different branches qualify at different times. Members of the National Guard must wait 6 years to apply unless they are called to active duty before that. If they are called, they gain eligibility after 181 days of service. In order to qualify for a VA loan, potential borrowers must obtain a certificate of eligibility, which can be submitted online.
2. VA loans have a funding fee
While it is typically cheaper to get a VA loan compared to other low down payment loans, its important to note that they do have a one time funding fee. This fee varies from person to person, depending on the amount of the down payment and the type of veteran.
3. There’s no monthly mortgage insurance
Most other loans require a monthly insurance fee if you do not have at least 20% down on a new mortgage. With VA loans, that is not the case. The funding fee mentioned above eliminates this requirement.
4. They are only for primary residences
You can only use your VA loan benefits for your primary residence. You cannot use a VA loan to purchase an investment property or vacation home.
5. There’s no prepayment penalty
If you are financially able to make extra payments, you can do so at anytime without being penalized. This can help you save a large amount of interest over the life of your loan. For example, paying as little as an extra $100 a month can help you save tens of thousands of dollars in interest payments.
6. They're reusable
As long as you pay off the loan each time, you can use your VA benefits over and over again. Even if you have lost one to foreclosure, you still may be able to obtain another VA loan.
Apply for a VA Loan Today
Are you a veteran looking to purchase a home? Here at Home Point Financial, we are dedicated to helping those who served our country by helping them get the best loan to purchase their dream home. For more information about our VA loan program, please contact us today.