Let’s face it the VA loan is the best loan for either a refinance or purchase transaction. But some vets and even lenders do not know.
- They are reusable. You can only use your entitlement
- They are only for certain types of homes move in ready single family residences. No fixer uppers.
- They are for primary residences. No vacation homes or rentals unless duplex, triplex four-plex owner occupied
- They are not issued by the VA. Lenders lend the money and the VA Guarantees the loan for each qualified VA loan.
- Guaranteed by the government up to 25% which gives lenders reassurance leads to great rates for Vets
- They are available despite foreclosure or Bankruptcy. Two year wait is standard and one year wait in extenuating circumstance not divorce
- They do not have mortgage insurance. Cheaper payment
- They come with a mandatory funding fee depending on how much you put down and hoe many times it has been used. No funding fee for disabled Vets
- They have limits in co-borrowers. Can be a spouse, another Veteran, or a care giver,
- They do not have prepayment penalties. Can pay down
- They are assumable
- The Veteran may not pay some fees They lender or seller is required to pay them
- VA does not have a FICO score requirement but the lenders do, Veterans United , Wells Fargo, USAA all have restrictions
- You can buy or refinance a Mobile home at 100% LTV. Needs to affixed to land you can own and meet the VA requirements. No parks with lot rent