THE MILITARY MORTGAGE
Getting a mortgage can be hard enough, but when you are a veteran, it may seem even more difficult. That is why the Department of Veterans’ Affairs offers a product specifically for our military.
Veteran loans are available for veterans, active military members, members of the Reserves and National Guard, as well as surviving military spouses. It is similar to a conventional loan, but with some added benefits to make home ownership easier for our troops. Keep reading for more details.
VETERAN LOANS VS. CONVENTIONAL LOANS
Unlike a conventional loan, you don’t have to put down any money at all. This makes buying a home more accessible for our brave soldiers.
Even better, despite not having a down payment, you do not have to pay for private mortgage insurance, which is normally required when you put down less than 20% of your home’s purchase price. This means extra money in your pocket every month over the life of the mortgage.
And that’s not all. A VA loan has a limit on your closing costs and you do not have to pay any penalties if you decide to pay off your mortgage early. How’s that for a deal?
THE PURPOSE OF VETERAN LOANS
Even if you are military personnel, you don’t have to get Veteran loans. However, the purpose of Veteran loans is to:
- Offer Veteran loans to eligible veterans in areas where private financing is not available. This tends to be in more rural areas, and in larger areas where commuting to approved lenders is difficult.
- To help eligible veterans who do not have enough money for a down payment to buy a home.
WHAT CAN YOU GET WITH VETERAN LOANS?
You can purchase a single family home, a condo, or a town home as long as you intend to live in it. Or, if you are eligible, you can refinance your current mortgage. Finally, you can use Veteran loans to make qualified improvements, such as adding insulation or replacing windows or doors, on your existing home.
HOW CAN YOU GET A VA LOAN?
Obviously, you need to be or have been in the military. Specifically, you must have served a minimum of 90 days on active duty during times of war, 181 days on active duty during times of peace, or six years in the Reserves or National Guard. You need to get a Certificate of Eligibility through VA Form 26-1880.
As with any loan, you also need to prequalify with an approved lender, such as Shamrock Financial. This generally takes less than 10 minutes and is the springboard for your next steps. Don’t forget you will need your pay stubs, bank statements, and any other documentation that you would need for a conventional loan.
YOUR NEXT MOVE
Veteran loans offer many benefits that are not available for conventional or even FHA loans. If you want to know if you qualify and how you can get a VA loan, Shamrock Financial can help. Give us a call and get started on the road to home ownership today.