You've dreamed of owning your own home, and now you're ready to take the leap. But where do you start? Here we will go over tips that will help you get the home you deserve with the help of the Veterans Administration (VA).
VA Home Loans
The VA stands behind or guarantees some of the loans provided by the lender. Since there is less risk to the lender, you are more likely to be approved for a loan.
Who Can Apply for a VA LoanFirst, make sure you are a current service member, veteran, or an eligible surviving spouse.
How Do I Know If I'm Eligible?Eligibility is dependent on the length of your service or the length of your service commitment, duty status, and record of service. If you're an active service member you will need to provide a statement of service. You will receive help from a commanding officer to complete the statement of service.
Down PaymentsSomething you might not expect but will be extremely beneficial to know is that about 90% of the time a VA Home Loan is given with no down payment. So long as the house’s sales price is not higher than the appraised value of the home.
Typically it is required that you make a down payment for traditional loans. If you make a down payment of less than 20% of the total mortgage amount with the VA, the lender will not drop you from consideration.
Have a SavingsDespite not needing to provide a down payment for your new home, saving up money ahead of time is in your best interest. There are fees that come along with buying a new home, so even if you’re not putting any money down, you’ll still need to have a reserve in your bank account.
Some of the fees you will be looking at include:
- VA Funding Fee
- Loan Origination Fee
- Closing Fee
- VA Appraisal Fee
- Recording Fee
And these are just to name a few.