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Get to Know the Basics of a VA Loan

June 20, 2019

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Get to Know the Basics of a VA Loan

Your local movers and storage company in New Haven, Connecticut explaining about the basics of a VA loan.

Anyone that’s served in the military is eligible for an exclusive financial benefit — a VA loan. This unique mortgage opportunity is helping military members across the United States purchase homes to help them and their families build roots — reasonably and affordably. In this article, we’ll help you understand the ins and outs of a VA loan so those of you eligible can get access to better rates and lower costs than traditional, conventional mortgages.

Understanding the Purpose of a VA Loan

These loans are special mortgages available through a program established by the United States Department of Veterans Affairs. Active service members, veterans and eligible surviving spouses that are not remarried are all eligible for this unique opportunity.

The VA sets the qualifying standards, dictates the terms of the mortgages offered and guarantees a portion of the loan, according to Investopedia. VA home loans are provided by private lenders such as banks and mortgage companies.

Important Facts to Know Before Applying for a VA Loan

Before applying for a loan, it’s important to know the basic facts such as qualifying requirements and limits. There is a lot of false information in the marketplace, which is why we’ve gathered the important points to understand when considering this option for your new home purchase.

  • Active duty and deployed service members, along with National Guard and Reservists may be eligible
  • You can receive VA benefits for all primary home purchases, not just your first home purchase, but only one home at a time
  • Unmarried spouses of those killed in combat may be eligible to receive the same VA benefits of their deceased spouse
  • Financing is available for up to $1.5M
  • Interest rates for VA loans are consistent with conventional loans and sometimes, even lower
  • VA loans are available for a number of housing types, not just single family homes

Sometimes, depending on the community and location of the home, you can work with sellers to get your closing costs covered, allowing you to purchase a home with very little upfront capital.

Inherent Benefits of a VA Loan

VA loans have many benefits designed specifically for military members.

  • No down payment required, unless required by the lender, or if the purchase price is above the established property value
  • You won’t pay private mortgage insurance, which can save you thousands of dollars each year
  • The lender may not charge a prepayment penalty
  • If your financial services change, the VA may provide you with assistance to cover your mortgage payments
  • Many states offer additional benefits to veterans such as property tax reductions

If you’re getting ready to purchase a new home and need help with your move, we’re here to help. Get in touch with our CT Moving team today to find out more about our services!

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