While most veterans and active duty military personnel are familiar with the home loan program offered through the VA, many still are not entirely sure how it works. Here are a few advantages to a VA mortgage you might not know about:
You do not have to be a veteran
Loans backed by the U.S. Department of Veteran Affairs (VA) are not reserved solely for veterans. While active-duty and honorably discharged members of the military may qualify for a VA loan, there are others who can qualify as well. These may include:
- Officers of NOAA (National Oceanic & Atmospheric Administration)
- Reservists, Coast Guard National Guard members
- Surviving spouses of deceased vets
- Military academy members
You can buy more than one home
While you can’t use a VA loan to buy an investment property, if you pay off your existing VA loan or refinance it into a conventional loan, you can take out another to buy a second home. Then you can turn your first home into a rental if you choose.
You can use a VA loan repeatedly
VA loans are commonly used to buy a home, but they can also be used to refinance. As long as the original VA loan is paid off, as is the case in a refinance, you can reuse your VA entitled over and over. You must have entitlement remaining in order to take out another VA loan.
You can buy multi-unit houses
You are not required to buy a single family home with a VA loan. VA loans can be used to buy multifamily properties with up to four units. However, you must live in one of the units in order to qualify. This is true for new construction or existing structures and you can use a VA loan to buy directly from a builder.
For more information on VA loans, call us today. We are also now one of the only national lenders to offer VA construction loans.
Sources:
http://www.benefits.va.gov/homeloans/
