Top 5 Facts About VA Loans – Benefits and Eligibility 2019

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More and more people want to get housing loans. But the option is endless. There is a type of loan guaranteed with the government and private sectors. Each loan has their requirements you need to comply. For VA loans, here are the following facts you need to know about VA Loans Arlington.

VA Loans Means Veterans Affairs Loan

For real estate beginners, a VA Loan is a type of mortgage loan guaranteed by the United States Department of Veterans Affairs. It is made possible with banks, savings, and loans or other mortgage companies. If you are an eligible veteran who wants to purchase a home, VA loan is perfect for you. This government guaranty protects the lender against in case a borrower fails to repay the loan.

Good Read: VA Loans – Frequently Asked Questions

It Doesn’t Require You to Pay for Mortgage Insurance

Unlike other mortgage loans, this type of loan is affordable because you don’t have to pay any insurance. PMI also is known as private mortgage insurance is used for a conventional loan. MIP or mortgage insurance premium, on the other hand, is for FHA loans or Federal Housing Administration loans. There is protection for the lender if you default your loan.

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It Has No Prepayment Penalty, and It’s Assumable

Did you know that this loan won’t restrict you to sell your home? If in the future you no longer want to own your house, you can sell it anytime you want. This benefit helps when you ant a new home to stay or want to move to a different state. You don’t have to pay for any prepayment penalty or early-exit fee. You can refinance your existing VA loan using the Interest Rate Reduction Refinance Loan (IRRRL) program. Which means you can switch to a non-VA loan any time.

No Hassle and It’s Easy to Qualify

Everyone wants a hassle-free and easy transaction. No one wants to deal with months of the home loan process. Well, VA loan is like other mortgage loans that demand specific documentation, credit history, and sufficient monthly income. But compared to others, VA loans are more flexible. Why? It is because of the VA loan guaranty. The Department of Veterans Affairs wants to make it easier for veterans to buy or refinance their homes.

It Has Low Closing Costs

If you’re eligible for a VA loan, you’re lucky to get a low closing cost. The Veterans Affairs limits the closing costs lenders can charge to its applicants. It means VA loan is more affordable than FHA and conventional loans. The money you saved from this transaction is great for moving costs, furniture, and home improvements.

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Am I eligible for VA financing?

VA home loans are available to veterans, active service members, and in some cases, surviving families. Assess this list and if one of the following is true, salutes you’re qualified for VA loan Arlington.

  • Did you serve 181 days of active duty during peacetime?
  • Did you serve 90 days of active duty during wartime?
  • Did you serve six years in the Reserves or National Guard?
  • Is your spouse killed in the line of duty and you’re not remarried?

If your answer is YES in one of the questions, your eligibility never expires. Want to know more about mortgage loans and VA Loan Arlington? Contact us.

Good Read: VA Home Loans