We are proud to serve the veterans and active-duty members of our armed forces that have served our country. To assist this brave group of men and women in their home buying experience we will be posting a series of blogs to help them secure a VA loan. Part 1 is a basic introduction to the VA loan, and how it differs from a conventional loan.
Straight to the point: a VA loan is an exclusive, lower-cost loan that helps enlisted service members and veterans of the United States military achieve their dream of home-ownership. The VA loan was established in 1944 to help military service members buy a home after returning from World War II. VA loans are backed by the Department of Veterans Affairs and can typically be used to finance up to 100% of a primary residence.
VA vs. Conventional
As an active duty service member or veteran, it’s important that you’re aware of the unique advantages that VA loans have to offer, especially when it comes to purchasing your first home. Compare the benefits of a VA loan to those of a conventional :
How do VA benefits work?
Eligible VA borrowers may finance up to 100 percent of the purchase price of a home. Your loan officer would be happy to discuss your options based on your individual situation and where you live. What many don’t know is that your VA benefits never expire, and you may use your benefits as many times as you wish for future home purchases or refinances. If you own a home that is currently being financed with a VA loan, you may purchase a new primary residence using another VA loan if you have enough remaining VA eligibility. So even if you have used the majority, or even all your VA entitlement to purchase a home, your entitlement can be fully restored once you repay your loan in full.
VA loans can be used for:
- 1-4-unit residential purchases (must be primary residence)
- Interest rate reduction refinancing (IRRL)
- Cash-out refinancing (any refinance other than IRRL)
Look for more VA Loan Home Buying Guide blogs in the future helping veterans and active-duty military get the home of their dreams. For more information on how you can secure a VA loan, contact a NASB VA approved lending officer at 1-844-334-4739 or visit here .
Download the complete free NASB eBook, Your American Dream Starts with a VA Home Loan
* VA requires a down payment if the borrower does not have sufficient entitlement, for Graduated Loan Payment loans or one where the loan amount exceeds the property value. Typically Lenders, however, will also require a down payment of 25% (or more) for the amount in which the loan amount exceeds the conforming loan limit (‘Jumbo loans’).