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A VA Loan can be one of the most powerful benefits available to military personnel like you to achieve your financial goals of homeownership and financial independence. Offering unique benefits to active duty, reservists, national guardsmen, and of course, veterans, the VA Home Loan is one of the best ways to purchase a home.
The distinctive advantages of a VA Home Loan include:
- No money down, meaning you can start looking for a home today
- Competitive interest rates, saving you potentially thousands over the course of the loan
- No Private Mortgage Insurance (PMI), which can save you hundreds of dollars every month
All of these benefits are unavailable to the general population and can put home ownership within the reach of every rank, officer or enlisted. Many banks have been tightening lending and credit standards for years since the 2008-2009 financial crisis and may not understand your military income or unique situation. A VA loan can be the easiest and cheapest path toward home ownership for you and your family.
What is a VA Loan?
A VA loan is offered to eligible military servicemembers and veterans to purchase homes. The program was created in 1944 to help returning soldiers afford homes. It's been running successfully ever since. Over 20 million military personnel have taken advantage of this unique, military only opportunity.
The loan is issued by approved lenders and backed by the federal government. Therefore, lenders can give you their most competitive interest rates, take no money down, and don't have to charge you PMI. This saves you thousands and gets you pre-approved to buy your home faster than you can imagine.
VA Loans can be used for:
- First time homebuyers
- Homebuyers with 1 or more properties
- Refinancing a non-VA loan or VA loan mortgage, lowering your monthly payments OR allowing you to take equity out of your home
- Rental properties (investment properties) as long as you occupy at least one unit of the property. For instance, you could buy a fourplex and rent out three of the units, while living in the fourth. Or, if you get PCS orders, you could rent out your primary residence while it was still under a VA loan. You CANNOT use a VA loan for a pure investment/rental property that you do not occupy for at least a year.
Who is eligible for a VA Loan?
If you're reading this blog about military financial independence, probably YOU! Active duty, reservists, guardsmen, retirees, veterans: just about everyone who's taken an oath to “protect and defend the Constitution of the United States” is eligible for this amazing benefit.
You are most likely eligible for a VA Home Loan if you meet one or more of the following criteria:
- You have served 90 consecutive days of service during wartime
- You have served 181 days of service during peacetime
- You have more than 6 years of service in the National Guard or Reserves
- You are the spouse of a service member who died in the line of duty or as a result of service-related disability