In 2015, there were 631,142 home loans guaranteed by VA in the United States. But, just because this is such a popular choice for borrowers, doesn’t mean that information about this loan is widely known. Who can get a VA loan? What makes a VA loan different from the other types? Unfamiliarity with VA loans is all too common. Summit breaks down the VA loan basics by answering some of your VA loan questions.
Who is eligible for a VA loan?
Active military members, veterans, and widowed spouses of military members are all eligible to apply for a VA loan.
What homes qualify for a VA loan?
VA loans can be used to buy move-in ready homes, town homes, or condominiums that you intend to make your primary residence. There is also a loan limit, depending on the county you are purchasing in, call your local Summit Loan Officer for more information on the limits.
How much is the down payment?
Zero! There is absolutely no down payment for a VA loan.
What about refinancing?
A refi is also available for an existing VA loan. A cash out refinance will let you take cash out of your home equity which will allow you to pay off debt, renovate your home, pay for school, etc.
What are the benefits of a VA loan?
Apart from no down payment, there are many benefits to getting a VA loan. The VA guarantees a portion of the loan amount, which makes it easier to qualify for this loan. Mortgage insurance is not required with this loan. If you are struggling to make payments on the loan, the VA can help negotiate repayment plans or loan modifications to avoid foreclosure.
Think a VA loan may be for you? Or just want some more information? Get in contact with Summit Funding, Inc. today, find your local office here.