Are you considering buying a home? If you’re a veteran or military service member, you might be eligible for a VA loan. And the good news is that VA offers innumerable perks unmatched by any other home loan option. Read on to learn more about VA loans.
What is a VA Loan?
A VA loan is a home mortgage option issued by private lenders, but partially guaranteed or backed by the Department of Veterans Affairs. It’s one of the few loans that don’t require a down payment and eligible borrowers can either use the loan to buy a home as their primary residence or refinance a current mortgage.
What Type of Home Can I Buy with VA Loans?
If you’re planning to purchase a working farm, vacation home, fixer-upper, a downtown deli, or other investment properties, VA loans might not be for you. That’s because VA loans are for primary residences that are designed mainly for properties in “move-in ready” condition, such as condos, single-family homes, and modular housing. However, you can also use the loan to buy multiunit or duplex properties, provided that you live in one of the units.
Who’s Eligible for a VA Loan?
You’re likely to qualify for a VA loan if:
- You’re a veteran or an active-duty military member.
- You’re an unmarried surviving spouse of a service member who passed away while on duty. Spouses of service members missing in action or prisoners of war are also eligible.
- You meet the lender’s requirements for income and credit along with one of the above criteria.
What’s a VA Loan Limit?
While VA loans don’t limit how much a person can borrow, there’s a cap on the guarantee. That’s the amount of money the Department of VA will cover if you default on your loan. According to VA, the limit for a no-down-payment loan is $548,250.
Buy a House Using VA Loans!
For many military borrowers, VA Home Loans are one of the most powerful lending programs in the housing market. If you think you’re eligible and have any questions about VA loans and everything you should know about them, feel free to get in touch with our real estate pros today!