As a military member, you have access to many benefits, one of which is the VA loan.
This type of loan allows you to buy a home with no money down and can be a great way to get into homeownership.
However, there are some things about VA loans that you may not know.
In this article, we’ll cover five things you may not know about VA loans.
We’ll discuss how they work, what the benefits are, and some key considerations to keep in mind.
By the end, you’ll have a better understanding of this type of loan and whether or not it’s right for you.
You may be eligible for more than one VA loan
If you are a veteran or active service member, you may be eligible for more than one VA loan.
These special loans are designed to help support those who have served our country and are available through the Veterans Administration (VA).
Whether you are purchasing a first home or an investment property, getting approved for a VA loan can help make that dream a reality.
So if you are a veteran or an active service member thinking about buying a home, don’t let your eligibility expire―apply today!
There is no minimum credit score required for a VA loan
When it comes to securing a loan, many people assume that there is a strict minimum credit score requirement that must be met.
However, this is not necessarily the case for VA loans. As the name suggests, these loans are made available by the Veterans Administration, a division of the federal government that supports military veterans and their families.
Because the VA understands the unique financial challenges facing service members, they do not place any specific credit score threshold on applicants.
This means that qualified borrowers can secure a VA loan with any level of creditworthiness, from excellent to poor.
So if you are a veteran in need of financing for your next home purchase or refinance, consider looking into a VA loan to see if you meet the necessary criteria.
You can use a VA loan to purchase a multi-unit property
A VA loan is a popular option for homebuyers, as it offers low interest rates and flexible repayment terms.
What many people don’t realize, however, is that a VA loan can also be used to purchase a multi-unit property.
Whether you are looking for an investment or simply want to live in one unit while renting out the others, a VA loan makes it easy to own a multifamily home.
With competitive interest rates and no application fees, this type of financing can make your dream of owning a multi-family home a reality.
So if you have been thinking about purchasing a multi-unit property, why not explore the many benefits of a VA loan?
With its flexibility and ease of use, it is sure to make your buying process simple and stress-free.
The funding fee for a VA loan is lower if you have a service-connected disability
For many veterans, taking out a VA loan is an affordable way to finance their dream home. Because these loans are guaranteed by the federal government, they tend to have lower interest rates and more flexible repayment terms than conventional mortgages.
However, there is one small fee associated with most VA loans that can be a bit pricey: the funding fee. This one-time charge is calculated based on several factors related to your finances and your history of service.
But perhaps the most important factor in determining your funding fee is whether you have a service-connected disability or not.
In general, veterans who do not have any service-related disabilities will pay a higher funding fee than those with disabilities.
This makes sense, as disabled veterans are considered to be at greater risk of defaulting on their loans due to financial hardship or illness.
In fact, some lenders may even offer lower interest rates or other incentives specifically for disabled veterans with VA loans, recognizing the economic challenges they often face.
So if you are thinking about applying for financing through the VA loan program, it is definitely worth considering whether you may qualify for disability benefits first – this could mean big savings when it comes to paying back your loan!
You can receive up to $10,000 for energy-efficient improvements with a VA loan
If you are a veteran looking to purchase or refinance a home, a VA loan may be the ideal mortgage option for you.
Not only does this loan offer competitive interest rates and flexible repayment terms, but it also comes with a host of special mortgage benefits.
One of these benefits is the opportunity to apply for energy-efficient mortgage enhancements through your mortgage company. With these enhancements, you can receive up to $10,000 as an incentive to make energy-efficient improvements to your new or existing home.
Whether you want to install new insulation or replace your windows with more efficient models, this mortgage benefit gives you the opportunity to transform your property and reduce your energy costs at the same time.
So if you are ready to invest in your home and make it more energy-efficient, consider looking into a VA loan today.
