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VA loans are designed to give veterans and military service members access to affordable home financing options. However, there’s some confusion about how these loans work and what you need to do to qualify. If you’re thinking about applying for a VA loan for your first home, here are some of the most important things you need to know.

Answers to Common Questions About VA Loans

What are VA loans?

VA loans are not offered by the Department of Veterans Affairs. They’re given out by private lenders. The VA simply guarantees the loans to these lenders, which allows them to offer affordable financing to qualified buyers with more confidence.

Who is eligible for a VA loan?

VA loans are reserved for active duty service members, veterans, select National Guard or Reserve members, and select military spouses. Veterans may use their entitlement for the first time, or for subsequent use, so long as they are eligible to do so. Additionally, they’re reserved for service members who will be living in the home after purchase, so investment property purchases are not eligible.

What are the benefits of a VA loan?

va loanThe largest benefit of going with VA loans over other types of financing is that they allow qualified buyers to purchase a home without a down payment. Other lending options usually require a percentage of the purchase price upfront. VA loans provide down payment assistance by eliminating the cost and hindrance of saving a certain percentage of the home’s value. Additionally, this type of loan also places limitations on closing costs and mortgage insurance premiums.

What should I do before applying for a VA loan?

VA loans still take buyer credit into account when considering rates and approval, so it may be beneficial to check your credit score and work to improve it by paying off debt and scheduling on-time payments before you apply. If you’re ready to get started with the home buying process, find a lender that works with VA loans to discuss the paperwork and information you need to apply.

 

If you’re looking for a VA loan or any other types of home loans, contact Dan Main. Serving homebuyers throughout the Saint Peters, MO, area for more than 20 years, Dan provides personal and friendly service aimed at taking the stress out of the homebuying process. With options for veterans, first-time homebuyers and those in need of down payment assistance, Dan is able to customize financing and mortgage options to meet your specific needs. Get started by checking out available loan options online or calling (636) 284-4144.

Dan Main: NMLS # 502036
Flat Branch Home Loans NMLS # 224149
947 Waterbury Falls Dr
O’Fallon, MO 63368
This is for informational purposes only and not an offer to lend or extend credit.

 

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