VA Loans
What is a VA Loan?
VA loans are mortgages that are backed by the U.S. Department of Veterans Affairs (VA) and are available to eligible service members, veterans, and their families.
These loans are designed to help active duty military personnel and veterans afford the cost of purchasing a home, and they offer several benefits, including:
No down payment required: VA loans do not require a down payment, which can make them a good option for those who don’t have a lot of cash for a down payment or who have difficulty saving for a down payment.
No private mortgage insurance: VA loans do not require private mortgage insurance (PMI), which can save borrowers hundreds of dollars per month.
Competitive interest rates: VA loans often have lower interest rates than conventional loans, which can save borrowers money over the life of the loan.
No minimum credit score: VA loans may have more flexible credit requirements than conventional loans, which can make them a good option for those with less-than-perfect credit. In fact, there is no minimum credit score requirement.
No prepayment penalties: VA loans do not have prepayment penalties, which means borrowers can pay off their loans early without incurring additional fees.
What is the VA Loan Eligibility?
To be eligible for a VA loan, you must meet the following requirements:
You must be a current or former member of the U.S. military, or the spouse of a current or deceased military member.
You must have satisfactory credit, as determined by the lender.
You must be able to demonstrate the ability to repay the loan.
You must be a legal resident of the United States.
You must occupy the home as your primary residence.
You must meet certain service requirements, depending on your military status. For example, active duty service members must have served at least 90 days of continuous service, while veterans must have served at least 181 days of active duty or have been discharged due to a service-related disability.
- You must obtain a certificate of eligibility from the VA, which can be obtained through the VA website or through your lender.
Do Realtors like VA Loans?
It is not accurate to say that all realtors do not like VA loans.
Some realtors may be more familiar with other types of loans and may not have as much experience working with VA loans, but this does not necessarily mean that they do not like them.
There are a few reasons why some realtors may not be as familiar with VA loans or may not have as much experience working with them. For example:
VA loans are only available to certain individuals, so not all real estate transactions will involve a VA loan.
The VA has specific requirements that must be met in order to obtain a VA loan, and these requirements may be different from those of other loan programs. This can make the process of obtaining a VA loan somewhat different from other types of loans.
VA loans may have stricter appraisal requirements, which can impact the value of the property.
It is important to note that these are not necessarily drawbacks of VA loans, but rather factors that may make them less familiar to some realtors. Ultimately, the decision to use a VA loan should be based on the individual needs and circumstances of the borrower.
VA loans are an excellent option for military personnel and veterans looking to purchase a home.
If you’re interested in learning more about VA loans,
call The Letson Group today
at 719.247.6622
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