Thousands of veterans and active duty military members across the country are missing out on the benefits of the VA loan. Many find they don’t know enough or are provided misguided information that steers them away. I am happy to assist any active duty or veterans within or moving to the Northern Virginia area find the information they need regarding the VA loan.
WHAT IS THE VA LOAN?
The VA Loan is a mortgage loan taken out through a lender that is insured up to 25% by the VA. It is not issued by the VA. However, the backing of the VA mitigates the risk of the lender. In return, the lender extends some benefits to the borrower. Examples of these benefits may include no down payment requirement, lower interest rates and not requiring mortgage insurance.
WHO CAN USE A VA LOAN?
While the VA is not the lender, they do have a few requirements to qualify. CLICK HERE for a link to see the eligibility chart from the VA. Keep in mind these are “fleet time” requirements. Therefore, they do not include basic training or AIT. The other requirement by the VA is that you must have a discharge that falls into “other than dishonorable” or be active duty.
As mentioned, the VA is not the lender. So, while those are the only two VA requirements for eligibility, each lender will have their own requirements. Therefore, it is important to do your research on lenders. You should find the best option that will work for you.
FUNDING FEE
The funding fee tends to scare many away. However, you may be surprised after doing a comparison of overall loan costs on various loan types. For example, an FHA loan will require mortgage insurance so comparing that cost with the funding fee over the life of the loan can save you money.
The funding fee is always going to either be paid by the buyer or seller at closing (not before) or rolled into the loan.
Also, if you are a veteran with ANY recognized disability, you likely qualify for the funding fee to be waived. (YES, YOU READ THAT RIGHT!) Please reach out to a lender to go over more details.
A FEW OTHER CONSIDERATIONS:
Some other requirements of VA borrowers include:
-You must move into the property as your primary residence within 6 months (up to a year with special approval).
-You must stay in that residence for 1 year (special circumstances can be approved with qualifying events)
-Property must be only 1-4 units and titled as real estate, be on a “permanent fixture”, and meet quality standards determined by appraiser and underwriter. While this scares many, the process has improved greatly over the years.
-As of Jan 1, 2020 you may no longer be required to stay under the “county cap” as long as you do not have any other active VA loans or VA foreclosures!
-YOUR BENEFITS DO NOT EXPIRE AND CAN BE USED MORE THAN ONCE! A common misconception has lingered from the original VA loan requirements set forth during WWII. However, these rules have changed so please reach out to see if you qualify!
REACHING OUT AND SOME CREDIT TO GIVE
To get a more detailed overview of the benefits of using a VA loan I recommend finding a qualified professional. If you are in or moving to Northern Virginia, I am happy to assist you in this process! If you are not, I do have some companies that are licensed in multiple states and I am happy to give you their information. Please feel free to reach out abbiesroadtohome@gmail.com or 703-969-4677. You can also have a look around the rest of my website!
I would personally like to give a shoutout to David Smith and the team at TheVALoan.Org for extending my knowledge of the VA loan! While I learned a lot during my own experience of using a VA loan to purchase our first home, I added an extensive amount of knowledge from his team! They are also licensed in 48 states, so feel free to reach out and pursue your VA loan!
SOURCES OF INFORMATION:
https://va.org/va-loan-eligibility-requirements/
https://www.nerdwallet.com/article/mortgages/fha-mortgage-insurance
ABOUT THE AUTHOR
Abbie Sprague is a REALTOR® serving the Northern Virginia area under the United Real Estate Brokerage. She creates an experience that helps reduce stress and make the buying and selling process simple. Her motto for clients is “Informed and In Control”. She firmly believes that ensuring her clients understand each step of the process and are kept up-to-date and informed throughout removes extra levels of stress and paves a better, more enjoyable experience.
She is happy to serve any clients in the Northern Virginia region, but also has a passion for using her personal expertise in military relocation to “help the next one along”. As a spouse and “brat,” she has seen first hand some of the challenges that this group of buyers and sellers face. Her goal is helping them understand all options as to renting and buying, match the time constraints often faced, and offer help with all the details that go along with PCSing.
She is a wife and mom to a wild one-year old little boy and a sweet old-lady dog. She has a passion for travel and has lived in every region of the United States (except Texas, if you consider that its own?) and the beautiful island of Guam. Before pursuing real estate she had a successful career in the automotive business focusing on internet sales, digital marketing, and lead management.
