A VA Home Loan is a home loan program designed specifically for qualified veterans and is guaranteed by the veteran administration, also known as the VA. The guaranty which the VA provides is designed to protect the lender from any possible loss in the event the veteran borrower were to default on the loan. As a result of this guaranty, lenders can offer the VA home loan to veterans without the veteran needing to put any money down.
VA Loans VS Conventional Loans
VA home loan qualifications differ from conventional loan qualifications and requirements. Conventional loans, unlike VA loans, aren’t backed by a government guaranty or any insurance. The flexibility for a conventional loan is a little better if the loan is higher than the VA loan limits. Conventional loans usually require a high down payment while VA loans don’t require a down payment at all. As you can see from these comparisons, the VA home loan is a much more favorable choice.
What to use your VA loan for
It will depend on what your lender is capable of doing for you, but the below list shows what VA loans are good for:
- Purchasing a single family or multi-family home, condo or townhouse
- Building a brand new home
- Buying and renovating a home that needs some TLC
- Upgrading your home with new energy efficient improvements
- Refinancing your home (if you have an existing VA home loan)
- Purchasing a manufactured home
- Buying a mobile home
- Buying a home and assuming the existing mortgage
A qualified VA lender can assist you with any kind of loan, but some lenders choose not process loans for mobile or manufactured homes. To find the best lender it’s best to shop around for a lender who can meet your needs. Interview with multiple lenders and compare them to find the best one that most closely matches your needs.
Things to Avoid While Your VA Loan is Being Processed:
- Don’t buy anything on credit (except for minimal use of your credit cards that may be necessary.) Especially big purchase items like a new car, a boat or any other assets.
- A no brainer- obviously, don’t buy another house.
- Don’t spend a bunch of cash on anything (unless you’re paying off some debt.) Having that cash in your account could help with your approval and even if you’re not approved for some reason, then that cash could go towards a conventional loan or down payment if one is required.
- Try to avoid any lawsuits. Don’t break the law, and don’t get any traffic violations.
- It’s also best if you don’t move.
- If you already have a mortgage and are trying to refinance, keep paying your monthly bill. Even for other bills or rent, don’t stop paying on any those.
VA home loan Features
- Assigning your mortgage to other qualified borrowers
- Receive a loan for a manufactured or mobile home
- Buy and renovate a home that needs some TLC
- Build your dream home
- Reuse the VA home loan
If you have any questions about VA loans or to find out if you qualify for a VA loan, Contact one of our VA home loan experts today! It’s quick and easy and best of all it’s free. Click the button below to be matched within minutes to a qualified lender eager to help you with your VA Home Loan.
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