Top 10 reason to use your VA loan

If you're a veteran and eligible for a VA loan, there are many advantages to using this benefit. However, despite the 21 million people in the US who are eligible for VA loans, only 6% actually use them. In this article, we will discuss the top 10 reasons why you should consider using your VA loan.

Reason 1: No Down Payment and No Mortgage Insurance

One of the biggest benefits of using a VA loan is that you don't have to make a down payment on a house. This can save you a significant amount of money, especially on a house that costs around $250,000. In addition, there is no requirement for mortgage insurance, which can save you even more money in the long run.

Reason 2: Ability to Use the Benefit Multiple Times

Another advantage of the VA loan is that you can use it again and again. Currently, you can use up to the conforming loan limit of $484,350, and if you want to purchase a home above that limit, you can pay the difference between the purchase price and the conforming loan limit as a down payment. This allows you to keep using your VA loan and move into different houses while renting out the ones you no longer occupy. Additionally, if you currently have a primary VA loan, you can use 75% of the rental income to offset the current mortgage.

Reason 3: Your Benefit Never Expires

Once you are eligible for VA benefits, you have them for life. It doesn't matter if you just got out of the military or if you've been out for 20 years, you can continue to use your VA loan. Surviving spouses may also be eligible to use the benefit, provided they are not remarried and can provide the necessary documentation.

Reason 4: Lower Interest Rates

VA rates are typically lower than other rates, making it a more affordable option for veterans. With zero percent down and competitive interest rates, the VA loan program offers significant savings compared to other loan options.

Reason 5: Available from Local Lenders

Contrary to popular belief, you don't have to go through the VA directly to get a VA loan. Local lenders also provide VA loans, and working with a local lender can offer better service and accessibility. Local lenders specialize in loans and have a better understanding of the VA loan process, making the experience smoother for veterans.

Reason 6: Versatility of the VA Home Loan Benefit

The VA home loan benefit is not just limited to buying homes. You can also use it to refinance your current mortgage or tap into a home equity loan. While the VA doesn't offer home equity loans directly, there are other banks in the community that do. Refinancing from an FHA loan to a VA loan is also possible.

Reason 7: Lenient Guidelines for Lower Credit Scores

Having a lower credit score, bankruptcy, or foreclosure doesn't disqualify you from using a VA loan. In fact, VA loans have lenient guidelines for lower credit scores. You can qualify for a VA loan with a credit score as low as 600. If your credit score is close to that, there is an option called a rapid rescore that can help improve your score within 30 days. Additionally, depending on the type of bankruptcy (Chapter 7 or Chapter 13), you may be able to qualify for a VA loan as soon as one to two years after the close date of the bankruptcy.

Reason 8: Talk to Multiple Lenders

If you're not in the immediate area, it's important to talk to multiple lenders to explore your options. Different lenders may have different programs and guidelines, so it's worth reaching out to find the best fit for your needs. Local real estate agents can also provide recommendations for lenders in your area.

Reason 9: Funding Fee Waiver for Disabled Veterans

If you are a veteran with 10% disability or more, you can have your funding fee waived. The funding fee is a fee charged by the VA to help offset the cost of the loan program. For first-time use, the funding fee is 2.15% of the purchase price, which is rolled into the loan amount. For second-time use, the funding fee increases to 3.3%. However, if you put 10% down, the funding fee decreases to 1.25% for second-time use and 1.5% for 5% down.

Reason 10: Condo Eligibility

Lastly, you can use a VA loan to buy a condo. However, it's important to ensure that the condo is VA-approved. You can find a list of VA-approved condos on the VA website or consult with your local lender for more information.

In conclusion, there are numerous reasons why veterans should consider using their VA loan benefits. From no down payment and no mortgage insurance to the ability to use the benefit multiple times and the fact that it never expires, VA loans offer significant advantages for veterans. The lower interest rates, availability from local lenders, and versatility of the VA home loan benefit further make it an attractive option. Additionally, the lenient guidelines for lower credit scores, the ability to talk to multiple lenders, and the funding fee waiver for disabled veterans provide even more benefits. Lastly, veterans can use VA loans to buy condos, as long as they are VA-approved.

It's important for veterans to take advantage of these benefits and explore their options when it comes to VA loans. Working with a local lender can provide better service and accessibility, and talking to multiple lenders can help find the best fit for individual needs. Veterans should also be aware of the eligibility requirements and guidelines for VA loans, such as the credit score requirements and the funding fee structure.

VA loans offer numerous advantages for veterans, and it's important for them to utilize this benefit to its fullest extent. Whether it's buying a home, refinancing, or tapping into a home equity loan, VA loans provide flexibility and affordability. Veterans should take the time to understand their eligibility and explore their options to make the most of their VA loan benefits.

Thank you for your service and dedication to our country. If you have any questions or need assistance, feel free to call/text us at 850.320.7757 or email us at Admin@WhittemoreGroupRE.com

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