As a Veteran, your VA home loan benefit could be one of the most powerful ways you have to build a secure financial future for yourself and your family. Here are the top ten ways you can use the benefit to build your financial security:
1. Once you’re eligible, your VA home loan benefit never expires.
Even if you never used your VA home loan benefit before, you can use it at any time. VA home loan benefits never expire. Only 13% of veterans nationwide have used their VA home loan benefit but 80% of veterans are homeowners.
2. You can buy a home with a VA mortgage with no money down.
Think of what you could afford to do to improve your home or how you could use the cash you’ll save with no down payment required.
3. You don’t have to pay mortgage insurance with a VA home loan.
Many conventional mortgages require you to pay mortgage insurance which ranges from .45% to over 1% of the balance owed on the mortgage. There’s no mortgage insurance for a VA home loan.
4. VA home mortgage rates are lower than conventional loans.
VA home loan rates are usually at least .25% lower than conventional loans of the same amount.
5. You can use your VA loan benefit multiple times.
VA home loans are meant for your primary residence so you can’t use the loan twice at the same time — like buying a vacation home. If you sell your home and move or you’ve paid off your first VA home mortgage, you are eligible for the VA home mortgage again.
6. You can work with a local VA Mortgage lender, one with the Certified Veteran Loan Specialist designation.
The VA backs your mortgage with loan insurance called the VA guaranty. It doesn’t provide the loans. You can work with a local independent mortgage broker lender who’ll be flexible and meet your needs.
7. You can refinance your VA loan.
Can you get a better interest rate on your VA mortgage if interest rates fall? Yes. The VA Interest Rate Reduction Refinance Loan (IRRRL) is a streamlined refinance. You won’t have to provide pay stubs or for an appraisal for the streamline refinance program.
8. You can cash out up to 100% of your home’s value in a VA cash-out loan.
If you have a current VA home loan, you can refinance your mortgage to take up to 100% of your homes value in cash. You can even lower your mortgage interest rate and get money for college tuition, home improvements, or other needs with a VA cash-out mortgage.
9. VA home loans have flexible credit score and financial requirements.
You don’t need a top credit score and may even be able to get a VA home mortgage if you’ve filed for bankruptcy. Individual lenders determine your eligibility.
10. VA mortgage county loan limits will be eliminated as of January 2020.
Up until January 2020, the limit for a VA home mortgage in Los Angeles and Orange Counties will be $726,525. But the program’s loan limits are being lifted starting January 2020.
That means you could buy a property worth $1 million, $2 million or even more with your VA home loan benefit as long as you meet the income and credit qualifications determined by your lender. You can also take a tip from some financially-savvy Vets who’ve bought multiple unit properties, lived in one of the units, and rented the others out. VA home loans can pay for properties with up to 4 units as long as you use one of the units as your primary home.
Secure your financial future with a VA home mortgage, buy the home you want, and work with a VA home loan professional who understands the program and you and your needs.