Hello World! Welcome Friends! Are you a military veteran or active duty serviceperson looking to buy a home? The U.S. Military Department of Veteran Affairs provides government loans for members of the armed forces to purchase a home.
A VA home loan makes it easier for servicemen and women to qualify for a loan. These loans can also mean no downpayment for the applicant. Best of all, a portion is backed by the government in the event the borrower defaults for any reason.
Before applying for a VA loan, you should explore VA home loan FAQs to get the answers you need. Keep reading to learn more about VA home loan guidelines.
What are Common VA Home Loan FAQs
When a person is ready to buy a home, it is natural for them to have many questions. When veterans are considering buying a home, they are eligible to apply for a VA mortgage in addition to other homebuyer programs. Therefore, they may have a different set of questions.
Once you are qualified for a loan under the VA program, you will receive a Certificate of Eligibility (COE). The certificate is accessed by the lender via the VA’s LFY or ACE portals.
We have put together a list of VA home loan FAQs that are commonly asked.
Can I Buy a Home Anywhere?
You can buy a home anywhere in the United States with a VA Loan. As long as the home is defined as your primary residence you should be okay.
The types of properties you can buy are not limited to single-family homes. The place can also be a condominium, multi-family unit, and new construction home. Homes for the express purpose of being an income property are not permitted.
Does the VA Set the Interest Rate?
The VA does not set the terms for the loan. VA loans are offered through financial institutions like any other loan. Lenders set the terms and conditions including the interest rates.
The VA like the FHA merely backs the loan to protect lenders when a borrower under their plan cannot make their payments.
Is there a Pre-Payment Penalty?
A VA home loan does not have a pre-payment penalty attached to them. Just like regular home loans the borrower can pay the home off early. The home can be sold at any time and they can refinance the home for better terms.
The ability to refinance is good because individuals that qualify for VA home loans must undergo the same underwriting as any other buyers. Their interest rate will be based on credit scores and other factors.
Am I Automatically Qualified?
What qualifies someone to apply for the VA Home Loan Benefit is as follows.
Any active military member enlisted more than 181 days or longer when the country is not engaged in war, qualifies to apply. If the country is at war, the time period is reduced to 90 days of active duty.
Members of the National Guard or Reserves must give a minimum of six years of service to qualify. For those wondering, can you have multiple VA loans, the possibility does exist depending on eligibility criteria and entitlement usage. Military veterans automatically qualify for VA loans and do not lose their eligibility.
Can Someone Assume the Loan if I am Reassigned?
VA home loan questions about loan assumptions are common because active members move around a lot. Yes, you can allow someone to assume the mortgage on your home as long as they meet the requirement of the VA home loan program.
Reasons for allowing someone to assume a home include relocation, purchase of a new home, or financial hardship. For other reasons consult with your mortgage lender.
Is There a Maximum Loan Amount?
Knowing how much money you can borrow to buy a home using a VA home loan is important. The maximum applicants can borrow range from $510,400 to $765,600.
There are allowances for buying a home in an area with a high cost of living. You will need to check the VA home loan guidelines for the state you hope to get a VA mortgage in.
Can I Hold More than One VA Loan?
VA home loan guidelines state that a person can have two active VA mortgages at one time. However, there are stipulations since the home you have a VA mortgage on is supposed to your primary residence.
Circumstances could arise where you are having trouble selling an existing home and you have been reassigned to a new region. You may be able to purchase a new home before the first home sells.
Of course, this is also contingent upon your ability to secure a second mortgage based on your income and credit history.
How Many Times Can I Apply for a VA Loan?
Borrowers that qualify for a VA mortgage can apply for a new VA loan for as many times as they want. The only stipulation is that you do not currently have two active VA home loans.
Are Benefits Extended to Family Members?
VA home loan benefits are extended to the surviving spouse under certain conditions. If a service person dies in the line of duty their benefits automatically go to the spouse. This also includes someone who dies as the result of an injury sustained while on active duty.
Other qualifying events is someone who has been MIA for 90 days or more. Or someone who is being held as a prisoner of war for that length of time.
In terms of veterans, the surviving spouse can claim VA home loan benefits if the person dies after being disabled for a minimum of 10 years prior to their passing.
There are also stipulations that apply to spouses resulting from a second marriage.
Let’s Go House Shopping!
Now that you have the answers to commonly asked VA home loan FAQs are you ready to go house shopping? The VA rewards those who serve our country by providing opportunities for homeownership. Take advantage of the loans available to buy your dream home.
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Click the links below for any posts you have missed:
How To Master Your Home Renovation
Benefits of House Cleaning Services
Painting Your Home When Selling
How To Avoid Nasty Household Surprises
Four Ways to Make Your New Building Project Completely Your Own
7 Types of Vinyl Flooring to Consider For Your Home This Year
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