Top Ten Facts About VA Loans
Over the years, VA loans have helped more than 18 million veterans purchase homes. A survey conducted in 2004 found that nearly 20% of eligible veterans weren’t aware of the special loan program provided to them as a result of their service. It is one of the best home loan programs available to anyone in the world. The Department of Veterans Affairs is actively trying to increase awareness about this amazing opportunity to give back to those who have served the United States of America. Here is what you need to know about the VA loan program:
It is possible to get a VA loan up to $1,000,000.
The limits for VA loans are dependent on the typical cost of a home in a particular state, county, or city. On average, the loan limit for a VA loan is about $417,000. However, in areas of the country which are more expensive, VA loan limits far exceed that amount.
Veterans can use their VA loan benefit multiple times throughout their life.
There not limit on the number of times that veterans and active military personnel can take advantage of the VA loan program. With that said, there is a lifetime maximum entitlement, which is the amount of the loan the VA will guarantee. If the borrower exceeds their lifetime entitlement they may have to make a down payment on the loan.
90 percent of all VA loans don’t require any down payment.
The no money down VA insured mortgage allows borrowers who have no savings to purchase a home. In order to qualify for a loan without a down payment, the buyer must have the home appraised by a VA assigned appraiser so a notice of the value can be issued. As long as the value of the home isn’t less than the purchase amount, the borrower can purchase the home without a down payment. In the event the asking price of the home is more than the value, the borrower will be required to come up with the difference.
Even if a veteran has experienced bankruptcy or foreclosure they can still qualify for a VA loan.
One of the best benefits of VA loans is their relaxed credit requirements compared to traditional loans. Even if you have several blemishes on your credit report or have less than perfect credit, there is still a good chance of qualifying for a VA loan.
There are currently more than 1.5 million active VA loans.
All the benefits of VA loans make them one of the most attractive loans available to those who qualify. Currently more than 1.5 million Veterans are taking advantage of this incredible offer earned by them through their service. Unfortunately, there are many more service men and women who could be taking advantage of this incredible loan program, but either don’t think they can afford a house or are unaware of the benefit.
The average veteran with a VA loan has less than $7,000 in overall assets.
This fact serves to show even veterans with little to no assets can still qualify and obtain a VA loan. Many potential borrowers don’t feel like they have enough money to get a VA loan. With the little to no down payment required for VA loans, nearly anyone who has a sustainable income is able to get one.
Less than 15 percent of the estimated total of the nation’s 22 million veterans have used their VA loan benefits.
One of the biggest downfalls of the VA loan program is the lack of awareness. There are currently over 18 million veterans who are eligible for a VA loan who have never used their benefits. Many of these 18 million veterans are paying rent every month when they could potentially be owning a home for much less all while building equity for their future.
VA loans can be used to refinance a house too.
VA loan benefits aren’t just available for borrowers to purchase a house, they can be used to refinance an existing loan as well. So even if you are a veteran who wasn’t aware of the VA loan program or didn’t take advantage of it to purchase your home, it isn’t too late to reap some of the benefits. Refinancing is widely available up to 100% of the home’s current market value.
Mortgage insurance is not required for VA loans.
One of the principle advantages of a VA loan over a FHA loan is VA loans don’t require any sort of mortgage insurance no matter how little the down payment is. For example if someone borrows $200,0o0 as a FHA loan, they will be required to pay $200 per month in mortgage insurance if the down payment is less than 20% of the home’s value. For VA loans this is not the case.
The VA helps homeowners in default work with their lenders to stay in their home.
Unlike traditional loans, where if you default on the loan you end up in foreclosure, VA loans strongly encourage lenders to work with borrowers in default to come up with a plan to allow the borrower to stay in their home. This is one of the greatest untold benefits of the VA loan program. No other loan on the market today can offer similar benefits to borrowers.