I’ve been curious about VA mortgages recently.
If you can qualify for a VA home loan it’s a great deal.
What’s a VA home loan?
First off, it’s backed and guaranteed by the United States Department of Veteran Affairs and it’s made specifically for American veterans and their spouses (as long as they don’t remarry). If you’re a veteran then you can get 100% financing without private mortgage insurance (PMI) or you can get a 20% second mortgage. The maximum in VA loans you can get with no down payment is $417,000 but that can go up to $625,000 in some high cost areas in the country.
I actually got the idea of making a post on VA by checking out a video on youtube about VA loans. The video mentions their YouServed VA blog and VA Mortgage Center. “We’re very proud of this video,” said VA Home Loans CEO Nathan Long. “It’s our desire to serve the Veteran community on many fronts, and this is one more way we can help increase awareness of the VA Home Loan Program.”
Awareness of VA home loans
As far as awareness goes, that’s HUGE for the VA home loans community. Those that are knowledgeable and are professionals are of course informed about VA loans. But how about the general public? Ask a random person on the street and most have NO IDEA about what VA mortgages are, who they’re for, and what they do. How about older veterans? There are so many out there that don’t have the faintest idea of what a VA loan is and how it can benefit their lives.
There’s a huge misconception out there about VA loans, and that’s that the federal government makes direct loans under the Veterans Housing Benefits Improvement Act. It doesn’t. However, what does happen, and what makes the VA loan so secure, is that the U.S. government guarantees the loans which are made by mortgage lenders. The veterans make the arrangements for the loans and then the government guarantees the mortgages. This is where the Veterans Administration comes in. The Veterans Administration appraises the property, if it’s fine with the risk, it then guarantees the lender against principal loss in case the buyer defaults on the loan.
Can I get multiple VA home loans?
Even if you’ve already gotten a VA home loan, in most cases you can get another one. If you’ve paid off your old VA home loan and you’ve sold off the property, you can have your VA eligibility restored for use. Also, on a one-time-basis, you can have your VA eligibility restored if you’ve paid off in full your old VA home loan but you still are the owner of the property.
Final thoughts
It’s really a great program, and it’s good thing to see awareness go up about it. It’s a shame to think that there may be some veterans who aren’t taking advantage of the program. If you know a veteran that’s in an undesirable living situation and may not know about the program, make sure to let them know!
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