The VA loans provide one of the strongest lending programs for the military in the world. It is loaded with numerous benefits and is known to have helped many veterans since its start in 1944. With low-interest rates on borrowing that cuts almost by 50 percent as compared to normal mortgage lending rates, this program is, therefore, one of the best. However, most concerned people still do not understand much about this program. Below are some things you should know about it.
5 things to know about the VA loans
Only for specific home types
As much as they have a big mortgage benefit, the VA loans are limiting on the kind of a house one can get through them. It will limit the veterans only to ‘ready to move in’ houses like the condos, apartments and single-family houses. The vacondo loans are popular now that this home setting is becoming a preference for many. However, if you are the type of a person who loves the farm houses or any other mega housing facility, then you had better choose another way of financing it.
Only for primary residences
The designing of the loans are for primary residence only but may have just a few exceptions. Before one qualifies for a home financing through this beneficial program, then you may have to prove that you are a resident. Additionally, when the veterans die, their spouses can also benefit but they also have to this, and they are not remarried.
The VA does not issue loans
Most people think that the veterans affairs department (VA) is the one responsible for issuing the loans. However, they are wrong! The VA only regulates the issuance by listing the approved lenders and setting various guidelines and approvals. Be sure to check this list of lenders and decide on which one to approach.
The agency guarantees loans partly
Veterans who are entitled to a loan usually enjoy the benefit of having the VA guarantee a quarter of the loan. In this regard, they can get a good bargain of a huge loan now that the government has given the lenders confidence. However, this does not mean that one borrows what they cannot afford to repay conveniently.
One can borrow many times
With a VA loan entitlement, you can borrow these loans for as many times as you want. However, one will have to clear the first loans without defaulting before proceeding to the next one. Due to the low interest rates, people find it easy to pay.