If you’re one of the lucky that are VA home loan eligible, you should know that it’s hands-down the best mortgage in today’s marketplace for those wanting to come to the closing table with as little cash as possible yet still have a competitive mortgage rate. If you’re soon to explore getting a VA home loan, here are six things you need to know about this earned benefit.
1:Only your Certificate of Eligibility determines whether or not you have access to the VA home loan program. You can obtain this certificate directly from the VA or you can work with your loan officer who can obtain this certificate instantly from the VA on your behalf.
2: There is no monthly mortgage insurance payment, helping you to qualify for the home you really want. Other mortgage programs do require a monthly mortgage insurance payment, increasing your monthly payment and reducing the amount you can borrow.
3: The VA home loan can only be used to buy and finance a primary residence. You won’t be able to finance a second home, vacation home or rental property.
4: You can reuse your VA home loan eligibility, it’s not a one-time affair. You can use a VA loan to buy a home and then later sell it or refinance out of a VA loan into another loan type to restore your VA home loan benefit.
5: You have the full range of mortgage options with the VA loan. Approved VA mortgage lenders have both fixed rate and hybrid loan programs. Fixed rate loans can range from 10 to 30 years and hybrid loans have initial fixed terms ranging from thee to 10 years.
6: You can have two VA home loans at the same time as long as you have some entitlement remaining from the initial purchase.