VA loans come with several benefits—from low closing costs to competitive interest rates. However, you need to be well versed in some of the features so that you can take full advantage of the opportunity. Here’s a guide to help you navigate through the mortgage process.
Are you eligible?
The best method for you to know whether you are eligible for the loan is by speaking to a real estate agent who specializes in this kind of credit. They have the expertise to assess and review your status and advise you accordingly. You can also use some sites to help you determine your qualification status.
What are the benefits of a VA loan?
There are loads of benefits that come with a VA loan. First, you will not be required to pay any down payment, notes primaryresidentialmortgage.com. This means that you can get up to 100% financing. Also, the loan comes with a government guarantee; hence, many lenders are willing to offer better terms. It’s also effortless to qualify for the loan vis-a-vis the other types of mortgage.
Can you use the loan for commercial properties?
Unfortunately, you cannot use your VA loan to buy an investment property. The credit is only for certain types of houses such as condominiums, single-family homes, just to name a few. It’s best if you inquire more about this from the specialists.
Who advances the loans?
If you think the VA is the one responsible for issuing the loans, then you are wrong. Instead, financial institutions and mortgage lenders who are licensed and approved to offer such services advance the loans. Therefore, it’s imperative that you find the right VA loan company that provides the best rates and terms.
VA loans are ideal to help active-duty military members, veterans and other groups of personnel to own homes at an affordable cost. The above guide is meant to set you up for a successful loan application process, as well as enlighten you on VA loans.