What Is a VA Loan?

For those who have served in the military or armed forces, a major benefit they receive is the option to purchase a home with a VA loan. For those that qualify, they can use this loan to purchase a home or use to purchase land and build on the property. VA loans can be very beneficial even if the case you are not a first time home buyer. If you would like more information on finding out more detailed information on a VA loan, please contact Family First Mortgage in Lafayette, LA today.

The Approval Process

The first thing that is considered when it comes to the approval process of a VA loan is the the term of your service and the role in which you served. These will help the lender to qualify you for the loan as well as the amount of the loan you will be given. Even if you did perform stellar service while you were enlisted, your finances will also be considered. This means credit history and timeliness of payments is just as important as they are with a conventional loan.

Although you do have to be a current or former service member in order to qualify for a VA loan, the VA is not directly involved in the approval process. You will need to apply and qualify through a VA approved private lender before you can move forward to purchasing a home. In order to be eligible for a VA loan, you must have sufficient credit and income, and a valid Certificate of Eligibility. You also must by the home in order for you to live in versus as an investment property.

Is It Right For Me?

There are plenty of benefits to going with a VA Loan which you can find below:

  • VA may be able to assist you if you find yourself in a position where you are having trouble making payments
  • Closing costs which can be surprisingly in other scenarios can be limited and may be paid by the seller
  • There is usually no down payment required-this is determined by the sale price and value of the home
  • No insurance premium requirement
  • No pre-payment penalties

Are VA Loans Just for Homes?

VA home loans are not only used for the purchase of a home although this is usually how they are used.

They can also be used in the following ways:

  • Build a home
  • Do a remodel or fix up a home
  • Install energy efficient appliances
  • Refinance an existing VA loan
  • Purchase a manufactured home

Call Us Today!

If you are a former or current service member and buying a home is on your mind, reach out to Family First Mortgage in Lafayette, LA. so we can answer any questions you might have. Reach out today!