Buying or refinancing a home is a big decision. We have compiled a list of the most common VA home loan questions to help make the decision process a little easier.
- Why should I get a VA loan over other loans?
There are several advantages to using a VA loan to buy or refinance a home, but most importantly, VA home loans typically have lower interest rates and lower closing costs in addition to no monthly mortgage insurance premiums. Of course, one of the biggest benefits of a VA home loan is no down payment is required.
- Can I get a VA loan if I have had one before?
You can use your VA home loan entitlement as many times as you want as long as you’re selling or refinancing the current home with a VA loan. Also, if you have used a VA loan to finance your current home and have paid off that loan, you can have your VA home loan entitlement restored one time only to purchase a second home.
- Do all lenders offer VA loans?
No. While many lenders are certified through the U.S. Department of Veteran Affairs to provide VA home loans, many find the strict regulation and added underwriting standards too difficult. That’s why it is important to choose a home loan lender that specializes in VA loans.
- What documents do I need to qualify?
In order to apply for a VA home loan, all borrowers are required to obtain a Certificate of Eligibility from the VA. You can apply for this by filling out VA Form 26-1880. You will need a copy of your discharge papers to apply. In addition, you will need credit, income and employment verification documentation.
- Does my VA home loan entitlement expire?
No. Generally speaking, a VA home loan entitlement is good until used while on active duty. Once discharged, determination of eligibility is made based on length of service and type of discharge.
For more information, check out our blog post titled “Five things most veterans don’t know about VA loans.”
Sources:
http://www.benefits.va.gov/homeloans/
http://mortgagesforveterans.org/veterans/five-things-veterans-dont-know-va-loans/
