A VA home loan is a great resource for any current military personnel and individuals who have been honorably discharged, medically discharged, or who simply decided to retire. Listed below are just three things to keep in mind when considering a VA home loan.
Entitlement Limitations
One of the biggest things to keep in mind when looking at a VA home loan is that there are going to be limitations to the entitlement that you receive. When you are eligible for a VA home loan, you will be given a single entitlement that you can use to purchase or build a home. However, this does not mean that you cannot get your entitlement back in order to purchase or build a second home.
If you want to utilize a VA home loan again, you will need to pay off the property that you purchased with your initial loan and still own that property. In addition, your entitlement can still be used if you have a remaining balance. For example, if you had an entitlement amount of $50,000 and only used half of it, you can still utilize the remainder to buy another property.
Property Limitations
Another thing to keep in mind is that a VA home loan is only going to be available for certain types of property. For example, you cannot utilize a VA home loan to purchase a vacation home or secondary home for you or your relatives.
The home must be used by for occupancy by you or your spouse. This is useful for active military personnel who want a house for retirement but are still going to be required transfer to new duty stations. In that situation, your spouse can occupy the home while you go to your new duty station.
Eligibility
Finally, you will want to keep in mind that there are a variety of eligibility requirements. For example, not every branch of service is eligible for one of these loans. In most cases, a member of the National Guard or the Reserves will not be eligible for a VA home loan unless their units were activated.
While you are going to be eligible for a VA home loan as long as you are currently in the military, that eligibility will change when you leave the military. If you retire or are discharged, you will need to contact a VA home loan provider in order to determine if you are still eligible and for how long. In many cases, the type of discharge and the amount of time that you spent in the service will affect how long you remain eligible for a VA home loan once you leave the service.
Contact a VA home loan specialist or lender today in order to discuss the many benefits provided by one of these loans. However, you will want to make sure that you keep in mind the eligibility requirements, entitlement limitations, and property limitations in order to make the applications as easy as possible for you.
Share8 January 2016
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