A Veteran Affairs or VA loan is a housing loan given by the United States Department of Veterans Affairs for persons in active duty, retired military personnel, and their recognized dependents. Unlike many other types of home loans, it has certain regulations imposed by the government. These loans also have advantages for veterans and military service members. While these advantages make it a great program for housing, loaners also need to remember the rules. We’ll get to know more about how VA loans operate and what their terms are.
VA loans were designed for veterans and active military personnel to help them buy a house. US Military personnel can buy condo units, houses, big properties, fabricated or premade houses, and construct houses of their own. Some advantages include no down payment, no mortgage loan insurance, and zero service fees. Good credit is also not a requirement.Once you have paid off your VA loan and still own the house, you are eligible for loan entitlement. It allows loaners to use a new VA loan to buy another property. Once they’ve paid off the loan, they become eligible again for a loan entitlement as long as they accomplish their next loan.
Loaners can go through loan entitlement again and again. But it has to be processed through an application each time using a VA Form 26-1880. It is duly accomplished and submitted to your local VA office.
What is Loan Coverage?
VA loans have bigger advantages granted for our servicemen. However, the government also imposed some limitations in its terms regarding its coverage.
A VA loan applies to a primary residence only. Loan recipients cannot purchase a vacation or rental income property. You also cannot loan for any property outside the US. Your chosen house can be any type, including multi-unit big properties as long as it’s for your primary residence, old or new. Older housing is subject to the lenders’ inspection and appraisal first when first trying to close a loan.
This term covers other types of homes. Loaners have other housing options, including a mobile or fabricated house as long as it is a normal liveable home with complete amenities. The loan covers the house and lot, and it must be used as a residence all year.
VA Loan Rules and Regulations
Once you’ve successfully bought the house or property, you must move in within 60 days of the purchase—a strict requirement. Occupancy coverage is solely under the name of the military or veteran member.
When the borrower is on a mission or deployment, the residence is confirmed empty or occupied only by his spouse and dependent children. All dependent children are required to be registered as occupants of your property through an occupancy certification. It also applies if the child is taken care of by a guardian or grandparent in the house when the homeowner is on active duty elsewhere.
Apply for a VA Loan with Desert Springs Mortgage
A VA loan allows veterans and all military personnel the chance to own a home. It has added advantages only for the military, but they have certain regulations to follow. Once they pay off the VA loan, they become eligible to loan for other houses. It is one of the other main advantages given to personnel who have done military service.
When it’s time to use your VA loan benefits, you can trust us in Desert Springs Mortgage. We cover VA loans and other home loan mortgages in Phoenix. Contact us today at (623) 432-1309 for lower rates and easier terms by applying for a home loan!