If you have served in the military, then you might be eligible for a Veterans Affairs loan. This loan, also called a VA loan, provides flexible eligibility and the option to buy a home when other lenders might deny you. Here are some different things to know about VA loans.
Most Military Members Qualify for the VA Loan
This loan is not just for currently active members of the military, but also anyone who has previously served in the military, National Guard, or reserves. If you are married to a military member that died while on active duty, you might be able to get the loan on your own. There may be a small waiting period if you have just enrolled in the military, though it isn't a long ways before you become eligible. You will get a certificate of eligibility in order to find out if you can apply for the VA loan or not.
VA Loans Are Meant for Primary Residences
Keep in mind these loans are not meant to provide you with a vacation home or a second home in most cases. The main purpose is to help you buy a home to use as your primary residence for you and your family. It is usually only applicable to single-family homes, manufactured homes, and condos. While some multi-unit properties often are eligible for a VA loan, they are not meant to be used for properties like commercial buildings or farms.
These Loans Tend to Be More Flexible
Unlike standard home loans, VA loans are willing to work with you even if you don't have the best financial history. For example, many people applying for a VA loan can still be eligible even if they have filed for bankruptcy. You may need to explain your reason for bankruptcy, but this is not usually an automatic reason for denial. If you have previously had a loan for a home that got foreclosed, this is also not a reason to automatically deny the loan. You can also apply for a loan even after a previous one you had for your home.
There Is a One-Time Fee Involved
The VA loan is definitely easier to be approved for and in general costs less than standard home loans, but there are still some fees to consider. The main one is a one-time fee upon approval of the loan, which is usually a percentage of the amount you are trying to borrow for your home.
For more information, talk to a lender like Texas Veterans Home Loans.Share