Holidays like Veterans Day and Memorial Day bring the dedicated service men and women protecting our country front and center in our minds. Their bravery and sacrifice grant us the security and freedom we enjoy daily, and with November 11, Veterans day, fast approaching, now is a great time to refresh your knowledge of VA loans and possibly even expand into a new niche market. Here are 5 things you may not know about VA loans.
- They’re reusable.
Even if someone has used a VA loan in the past, they’re still eligible for a new loan. Service members can reuse the loan as many times as they like. Furthermore, service members with bankruptcies and foreclosures may still qualify for a VA loan, even if it was a VA loan they foreclosed on.
- Only certain homes are eligible.
VA loans are primarily designed for move-in-ready homes that will be the service member’s primary residence. While there are a few exceptions, commercial properties, investment properties, and vacation homes are typically ineligible.
- The VA doesn’t issue the loans.
The VA doesn’t actually provide the loans; they just guarantee the loans (usually up to 25%), making lenders more confident and allowing service members to get better terms and rates.
- No mortgage insurance required.
The VA’s guarantee eliminates the need for service members to purchase mortgage insurance for their loans, saving them thousands of dollars. However, there is a funding fee of about 2-3% of the loan amount for VA loan recipients. This fee helps keep the VA loan program going and can be rolled into the loan amount or waived for those with service-connected disabilities.
- They have co-borrower restrictions.
Having a co-borrower who isn’t the spouse of the service member or another veteran with VA loan entitlement who will also live in the home will require a down payment on the home.
For more information about securing VA loans for your buyers, visit Veteransunited.com or catch this month’s Secrets of Top Selling Agents webinar program on Helping Veterans Achieve Homeownership. The webinar will be on Wednesday, November 8th from 1:00 – 2:00 PM EST. Don’t miss it!