Q.I think I’m eligible for a VA loan. What are the benefits of using this loan program?
VA loans are great loan options for Military Servicemembers and Veterans including Reservists as well as some Civil Servants employed in eligible areas determined by VA. Eligibility is based upon length of service. Spouses of military members who died while on active duty or as result of a service-connected disability may also be eligible.
Here are 6 quick things you need to know about VA loans:
- VA loans are a zero down payment option.
- VA loans are available for purchase or refinance (VA to VA Interest rate reduction or regular VA refinance) and even include jumbo VA loan options!
- VA loans are available for single-family homes, VA approved condos, townhomes, and 2-4 unit properties, provided the dwelling will be the borrower’s primary residence
- VA loan entitlement is reusable – if you’ve used your VA entitlement before you may still be entitled to another VA loan! In some cases, you may be able to retain your current home that has an existing VA loan and purchase another using your Bonus entitlement.
- VA loans do require a VA Funding Fee which may be less than mortgage insurance that is required on conventional mortgage financing. VA loans also do not have a prepayment penalty.
- VA loans may be available despite previous foreclosure or bankruptcy.