Buying a house usually requires getting a home loan to pay for it, but you can choose from many loan programs for your mortgage. Many people turn to VA mortgage loans, which offer government backing. If this is the type you would like to get, you might be interested in learning some important things about VA loans. Here are four vital things to know.
You Must Obtain a Certificate that Proves Your Eligibility
The only way you can apply for a VA loan and get approved is if you meet the criteria for the loan and provide a certificate of eligibility (COE). You must apply for the COE before applying for the loan, as the COE proves that you meet the eligibility requirements for a VA loan. The process for applying for one is not difficult, but it might take a little time. You should do this before proceeding with the loan request.
You Can Buy a House with No Down Payment
One of the top reasons to consider a VA loan is for the benefits they offer. One benefit is that you can get a VA loan without a down payment. In other words, you will not have to save your money for the next few years to have a down payment for your purchase. Instead, you can apply for a VA loan without providing a down payment. VA loans are one of few loan programs that allow people to buy homes without putting money down.
You Will Pay a Funding Fee
When you get a VA loan, you will pay fees. Fortunately, the main fee you must pay is a funding fee. The funding fee for a VA loan is a one-time fee, though. You pay it only once. Other loan programs require paying fees for years or an entire lifetime of the loan.
You Can Get a Second One
The other thing to know is that you can still qualify for a VA loan even if you already had one in the past. You can get a second VA loan if you meet the criteria, and some people even get more than two VA loans.
If you believe that you qualify for a VA loan and want to apply, contact a lender today. Most lenders offer VA loans, and you can learn more about the process by speaking with a loan officer from a financial institution that offers VA loans, like Dominion Capital Mortgage.
Share22 April 2021
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