Learn About VA Loans

When it comes to buying a home, there are many options available to you. One option that is often overlooked is a VA loan. These loans are specifically designed to help veterans and active-duty service members achieve the dream of homeownership. If you’re considering using a VA loan to purchase a home, we’ve provided answers to some of the most commonly asked questions below.

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What is a VA Loan?

A VA loan is a mortgage that is guaranteed by the Department of Veterans Affairs (VA). If you default on the loan, the VA will cover a portion of the lender’s losses. Due to this guarantee, VA loans have more flexible credit standards and require no down payment, making them an attractive option for many eligible homebuyers.

 

Who is Eligible for a VA Loan?

VA loans are available to a variety of service members, including:

  • Veterans
  • Active-duty personnel
  • Reservists
  • Members of the National Guard

To qualify for a VA loan, you must have served at least 90 days of active duty during wartime or 181 days during peacetime. Additionally, if you are a spouse of a service member who died in the line of duty or due to a service-related disability, you may also be eligible.

 

What are the Benefits of a VA Loan?

There are many benefits to using a VA loan, including:

  • No Down Payment: VA loans require no down payment, allowing you to purchase a home with little or no cash out of pocket.
  • Flexible Credit Standards: VA loans typically have more flexible credit standards than traditional loans, making them easier to qualify for.
  • Competitive Interest Rates: VA loans often offer lower interest rates compared to conventional loans.
  • No PMI: VA loans do not require private mortgage insurance (PMI), which can save you hundreds of dollars per month.

What if I’ve Used a VA Loan Before?

If you've used a VA loan before, you can still use it again. The VA doesn’t limit the number of times you can use this benefit, as long as you meet the eligibility requirements. You can use your VA loan benefit multiple times for different properties, provided you have enough remaining entitlement and meet certain financial criteria.

To qualify for a second or subsequent VA loan:

  • You must have remaining entitlement to use the benefit again.
  • You must demonstrate financial stability and be able to cover the new loan amount.

If you haven’t paid off your first VA loan, it can remain active while you use your benefit again, as long as you meet the eligibility criteria. The VA has specific rules and regulations governing its loan programs, so it’s important to ensure you qualify for the second loan.

 

Is a VA Loan Right for You?

VA loans are an excellent option for veterans and active-duty service members who are looking to purchase a home. If you’re interested in using a VA loan to buy your next home, contact Closing with Daniel today to explore your options!