VA loans are flexible, no down payment loans for military borrowers. VA loans have unique benefits and not all borrowers are aware of these, even those who are long time borrowers. Here are 10 things you may not know.
- As long as you pay off the loan each time, you can use you VA entitlement over and over.
- VA loans are designed for single family homes that are move in ready.
- You cannot use your VA loan for investment properties or vacation homes, they have to be your primary residence.
- VA loans are not actually issued by the VA, but instead the loans are only guaranteed by the VA.
- The VA also guarantees up to a quarter of the loan amount giving lenders peace of mind and obtaining great rates for service members.
- Even if you have a history of foreclosure, even on a past VA loan, or bankruptcy, service member can still obtain a VA loan.
- VA loans carry a mandatory funding fee. This fee is about 2 percent of the loan and is required whether you are refinancing or purchasing. The fee is designed to help the VA keep going and can be rolled into the loan.
- VA loans only allow a co-borrower if they are your spouse or another eligible veteran who will be sharing the home with you.
- VA loans do not have mortgage insurance.
- VA loans also do not have a pre-payment penalty, meaning you can make extra payments on the loan anytime without any added fees.