A majority of veterans and service members often bypass the VA loan option for homeownership. This is either because they aren’t aware of the advantages of the program or they think the process is long and arduous. Another reason could be that they lack the knowledge on how the loan works.
Recently, demand for Veterans’ Affairs Mortgage has been on the rise. Numerous benefits come with these loans. If you are not eligible for a VA loan, a Home Affordable Refinance Program (HARP) home loan company can help you out. Before that, however, here are some thoughts on VA loans.
1. They only purchase particular types of homes.
This loan is suitable for homes that are ready for move in by families or single people. As such, they include homes such as modular housing, condos, multi-unit properties, and single family homes.
If your property investment idea lies in the lines of a working farm, fixer-upper homes, or a downtown deli, then the loan might not be a suitable option for you.
2. You don’t need to get mortgage insurance.
Mortgage insurance is a costly affair since it takes up a significant chunk of your money to secure the loan. It is mostly applicable where you cannot secure a down payment of at 20%.
The VA guarantee eliminates the need for an insurance premium or mortgage insurance. This reduces the amount of money you have to pay, making the loan more affordable.
3. It is reusable.
You could use your full allocation of the VA entitlement time and again provided you complete all loan repayments every time. Additionally, if you have a bankruptcy history, or if you lost a previous mortgage to foreclosure, or if you have an on-going VA loan, you are still eligible for another one.
The freedom, peace, and happiness afforded to the country by all the members and branches of the military whether past or present cannot be repaid in any way. However, this program is a small token of appreciation, for their dedication and service.