4 Things You Should Know About VA Loans

As you prepare to purchase a home, you might be thinking about applying for a VA loan but uncertain if this is the right type of loan for you. If you have any type of military experience, choosing a VA loan is one of the best options you have, and here are 4 things you should know about these types of loans:

1. You do not need perfect credit

If you have a credit score of at least 620, you will likely qualify for a VA loan. For other loan types, creditors often require higher scores than this. Additionally, if you have a foreclosure or bankruptcy in your past, it will not disqualify you from qualifying for a VA loan. For a Chapter 13 case, you are eligible for a VA loan after waiting just one year from the date the court discharged your case. If you filed for Chapter 7 or experienced a foreclosure, you will need to wait only two years before you become eligible for a VA loan.

2. You do not need a large down payment

Secondly, one of the top perks of VA loans is the down payment requirements. Many people who apply for VA loans can buy homes with absolutely no money down at all; however, putting money down with a VA loan offers one key benefit – lower fees for the loan.

3.  You can get one even if you had one in the past

One thing many people do not realize is that you can get a VA loan multiple times. In other words, if you had a VA loan in the past, you can still qualify for another one.

4. You will not have to pay for mortgage insurance

While you will have to pay a one-time funding fee to get a VA loan, which goes directly to the Department of Veteran's Affairs, you will not pay a monthly mortgage insurance premium like you would with other loan types. This funding fee may be less, though, if you put money down on the loan. In general, though, the fees for VA loans are often much lower than the fees for other types of loans.

VA loans are ideal for anyone with military history and offer benefits and perks you cannot find with other loan types. You can apply for a VA loan by contacting a lender that offers them and when you apply make sure you have all your financial information handy for the lender. Be sure to look up VA loan closing costs and other relevant information.

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