Many people dream of taking on house loans without going through the hassle of making a down payment and improving their credit score, but it’s not an option that is readily available to everyone. Nonetheless, qualified borrowers can take on a unique opportunity that can help get them the best possible mortgage: VA loans.
What are VA Loans and How Do They Work?
VA loans are designed for active-duty military personnel, veterans, and other members that fall under the category. Unlike other mortgage programs, the government holds no part in issuing VA loans, but the U.S. Department of Veterans Affairs ensures that qualified borrowers can purchase their dream home at an affordable price without paying for a down payment or private mortgage insurance.
Keep in mind that VA loans are only applicable to homeowners who are purchasing their forever home, but it doesn’t cater to vacation homes or investment properties. On the bright side, borrowers can also use the VA loan for remodeling projects.
How Do You Qualify for a VA Loan?
Seeing as VA loans are designed for veterans, all borrowers who served in the Army, Navy, Air Force, Marine Corps, or Coast Guard are eligible for this type of mortgage program. However, veterans who did not serve for at least 90 days or were discharged due to misconduct may lose this privilege.
To prove your eligibility, you’ll need to apply for your certificate of eligibility online or ask your VA lender to handle it for you. However, remember that you still need to meet the lender’s financial requirements to become fully qualified to take on a VA loan.
Moving forward, spouses with a late husband or wife who passed on due to service-related situations – be it fighting in the war, became a prisoner, or is missing in action can also take on a VA loan.
The Bottom Line: Understanding the Innerworkings of a VA Loan and What It’s Best For
For families who have a veteran member, you can move on to the next chapter of your life and live in peace with a new home by taking on a VA loan to cover for your current needs. It’s an excellent reward for your years of service, especially considering the rising costs of houses in the marketplace.
Of course, just like any other home loan, it’s best to shop around for lenders until you discover the best program that suits your financial needs and capabilities.
How Can Our Phoenix Mortgage Lender Help?
Setting aside a budget for buying a home can be challenging for many people who live from paycheck-to-paycheck, but our expert loan officers can help cover your needs with VA loans. We’re a full-service mortgage brokerage company in Phoenix, Arizona, so get in touch with us at (623) 432-1309 and see our extensive list of financing options.