Hello World! Welcome Friends! Buying a home is an important milestone in life, and it can be quite daunting even for the bravest soldiers on the battlefield. But after active service, it can also be one of the best decisions you can make. Veterans are provided with special financing options to buy a house. There are Veterans Affairs (VA) loans which are helpful but can also be confusing without the right knowledge.
Understanding Your VA Loan
A VA loan helps veterans who don’t have much in savings or a high credit to buy a home. It is available for veterans, service members, and eligible military spouses. What makes VA loans helpful is that they do not require a downpayment or a high credit score and provide low-interest rates. They also do not require private mortgage insurance as they are government-backed.
The process to get a VA loan is not that cumbersome compared to other types of housing loans. Just be sure to use a loan provider with experience in VA loans to get the most out of your financial options.
There are two types of VA loans:
- VA Direct– Loans directly provided and managed by the Department of Veterans Affairs.
- VA-Backed– These are not directly offered by the Department of Veterans Affairs. But rather, Veterans Affairs helps guarantee the lender to get a loan from a private lender.
For both types, the VA will still have a few requirements and qualifications. It is best to prepare all the requirements needed and check your qualifications first before applying for a VA loan. You can also use tools to calculate your VA loan online. This can help you determine how much you can expect to get and what type of house is possible.
Eligibility
To qualify for the VA loan, first and foremost, a veteran or a borrower’s spouse will need to have completed the military service requirements. A Certificate of Eligibility or COE is also required to get a VA loan. You can secure a COE by applying online via VA’s eBenefits portal or sending a VA Form 26-1880 via mail. Another option is to look for an experienced and knowledgeable VA loan lender to help you with the COE and understanding your eligibility. Should you have any queries regarding your records, or feel that they may not be accurate, you may wish to get in touch with a military lawyer and get those corrected before you start the homebuying process to give yourself the best chance of getting a loan and into a fantastic property.
You are eligible if you meet ANY of the following criteria:
- Completed 90 consecutive days of active service during wartime
- Completed 181 days of active service during peacetime
- Six years of service in the National Guard or Reserves
- Your spouse is a service member who died in the line of duty or as a result of a service-related disability
Your eligibility is a major deciding factor during pre-approval, which is the initial part of the home buying process. Be prepared for it and secure supporting documents as soon as possible.
State-Specific Benefits
Most states offer additional benefits for veterans purchasing homes. These include a range of benefits from downpayment assistance to lower interest rates for paying off the loan quicker to additional money for veterans who left service within a certain time period. Be sure to visit your state’s VA program websites for all the details and try to find a lender in your state that understands the special benefits.
Choosing a Real Estate Agent
Getting help from real estate agents can save you time and money in the long run, but be sure to find one with VA loan experience. VA loans may be subject to some limitations and can be tricky. Some properties might not be available for sale to VA loan users, or the VA loans for that state may have certain specifications for the types of property that apply.
Look for a real estate agent willing to understand your financial situation and home desires, with expertise in VA loans in your state. It is better to determine this before you start searching, as the home buying process can be lengthy. This will help for a more efficient and effective home buying experience.
Appraise and Inspect
A home appraisal and home inspection are not the same thing. The appraisal process will determine the value of the property you want to buy. This is necessary for the buyer and lender to ensure they are purchasing a property at the right value.
A qualified VA loan appraiser will be required to make sure the property is valued and meets the criteria for the VA loan. They will be the ones to develop an opinion on how much a house costs based on a thorough inspection. This includes the house’s measurement and features compared against current market valuations and conditions. A real estate agent or lender with experience in VA loans can help navigate this process.
Getting Your Finances in Order
Although a VA loan makes it much easier and financially less strenuous to get a home, you still want to be economically smart. Before taking a loan, prepare your finances to have better chances even during the pre-approval. Ensure you have a good credit score and fix it as much as possible. This can be difficult for those who just got off from active duty, but give yourself a little time for it as this can be very supplementary in building your credibility.
Having a budget saved for the whole process of getting a loan and buying a house is recommended. If it is not the right time for you to take on a loan payment and other home-associated costs, save and wait until your finances are better. Additionally, stay up-to-date on real estate market trends to make sure you are buying the optimal property.
Get the Best Out of Your VA Loan
After active duty, service members deserve to come home and feel at home. VA loans are offered as a benefit, and veterans have every right to make the most out of them. Learn about and use VA loans to get your dream house after service.
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Toodles,
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