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Millions of active duty members and veterans have bought the mortgage in the past years. But how many of them know all about the house loan? The number is significantly low, and the future VA loan holders barely know about all the benefits.
When you are unaware of the VA loan benefits, you do not know what you are purchasing. Buying a home is already a complicated process, but knowing about the facts help you detangle. Moreover, you can make informed decisions. If you are about to purchase the best VA loans for bad credit in Houston, remember the following facts.
VA Mortgage is Different from Traditional Loans
If you pass the eligibility criteria, VA home loan is the best choice in this market. For instance, there is no pressure of retaining at least 620 credit. Unlike traditional loans, a VA borrower is eligible with a minimum of 580.
VA loan does not require a hefty down payment of 20% or any percentage of the loan value. The borrowers can qualify for 100% financing, and the borrowers need not pay additional standard fees.
Fees Linked to the VA Loan Program
Mandated by the law, the borrowers need to pay VA funding fee. The fee may range between 3.3% and 1.25% based on a few particular conditions.
Your type of service, whether you have taken VA loan before and whether you will put down anything – these factors lead to the ultimate estimation of VA funding fee.
It can be expensive, but your monthly payments are going to be lower than usual. Additionally, the Department of Veterans Affairs does not demand the funding fee.
Types of Financing Available with VA
If you are going to apply for a VA loan, learn about the restrictions. When borrowers proceed without knowing about the property requirements, they end up wasting their time, effort, and money. So, you can guess that the VA does not provide the mortgage for every type of property.
Now, do not lose hopes yet. You can use the loan to purchase a multi-unit or single-family residence which you will use for a primary purpose. You can also buy a manufactured home or build a house. Of course, it needs to be your primary residence.
This indicates that the buyers do not have permission to purchase a vacation home. So, an investment property or second home is not possible if anything as such is in your mind. You can start using the new property and wait. VA loan can be used again; therefore, you should bring the matter before your lender.
VA loans are growing, and it has become the best financing option for the veterans, now. For not being a one-time benefit, popularity has increased higher. If you want to use the mortgage once again, you need not pay for the actual loan amount in full. Check your VA loan entitlement before taking the final step. In the end, these unbelievable VA loan facts can help any borrower to dream big!