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VA Loan

Since 1944, VA loans have successfully helped more than 24 million military members purchase their dream homes. For most military members, VA mortgages have always been the go-to option.

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VA Loan

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  1. Things You Didn’t Knew About VA Loans Since 1944, VA loans have successfully helped more than 24 million military members purchase their dream homes. For most military members, VA mortgages have always been the go-to option. However, despite being immensely famous among Veterans, there are few things that most borrowers don’t know about these home loan facilities. What Are VA Loans And How Do They Work? VA mortgage facilities are home loan programs offered by the US Department of Veterans Affairs. These plans come with some remarkable benefits like 0 down options, lowest interest rates, no PMI requirements and flexible guidelines. To apply for a VA loan, you have to meet the eligibility criteria set by the VA. An eligible Veteran must apply for the Certificate of Eligibility (COE) before moving on with the process. Here’s how a VA loan application will look like for an eligible applicant with a COE- 1.Getting Pre-Qualified- As stated above, you must ensure that you can meet the VA’s eligibility requirements. Getting pre-qualified for a loan will also give you an estimate of how much loan amount you can afford, based on your income, credit score and service type. 2.Pre-Approval- At this stage, your VA-approved lender will verify your financial condition. If you are able to pass the parameters, you will be provided with a pre-approval letter. This letter will validate your affordability for VA loans. 3.Selecting your New Home- After getting pre-qualified and receiving your pre-approval letter, you can shop for your dream home with the help of a real estate agent. Always make sure that your real estate agent is well-versed in VA guidelines. 4.VA Appraisal- After finding your new home and moving on with the contract, you can ask the VA to send their appraiser to reevaluate the selected property’s actual cost. You must keep in mind that this appraisal is not a home inspection and it won’t make sure that your house is defect-free. 5.Loan Closing- Once the VA approves your loan and other requirements, you will be required to sign all the legal documents and pay any fee that is due upfront. Unknown Facts About VA Loans •VA loans are not issued by the VA. These loans are provided by VA-approved private lenders and are guaranteed by the department. Simply put, if the borrowers default in any way, the VA will pay a certain amount of the loan back to the lenders.

  2. •You can apply for another VA loan after paying back the existing one. •VA home loans are available only for a primary residence. A borrower cannot borrow the mortgage for buying a vacation home or investment property. However, the VA does allow duplex, multi-unit property, single-family homes, condos and modular housing, given that they will become your primary residence. •Because the VA follows flexible guidelines, an applicant with a defaulter history or bankruptcy is also eligible for VA loans. •Another noteworthy benefit of these loans is that they do not require the applicant to pay any Private Mortgage Insurance (PMI). •Although an applicant won’t be required to pay PMI, they will be subjected to VA funding fees. This fee goes back to the department to keep this program running. A Veteran can either pay this cost upfront or get it rolled into monthly installments. •VA loans come with no limits unless you have 0 or partial VA entitlement.

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