When you’re in the mortgage industry for quite some time, you learn a lot of things about client behavior, and that includes the things they know (and don’t know) about VA loans.
In this post, we are going to discuss some things about VA loans Spokane Tacoma, WA that many borrowers are not aware of (but they should be, in order to make an effective assessment on whether or not it is the way to go for a mortgage loan).
VA loans are reusable. That you can utilize your full VA entitlement more than once provided you pay off the loan each time. Please note as well, you may be able to acquire another VA loan even if you have lost one to foreclosure or currently have one.
It is meant for primary residences only. Just like in any other areas, VA loans, Spokane Tacoma, WA require you to occupy the property within 60 days of closing. In other words, they are not available to finance investment property, a vacation or second home. So, supposing the seller of the property, for some reason, can’t move out right away and they pay you a month’s rent while working for their transfer, then they should move out before the 60-day requirement expires as anything beyond that will consider it a rental property and the new VA loan could be called in.
They are guaranteed by the government. Meaning, if you have a VA entitlement, the agency typically guarantees up to a quarter of the loan amount. This gives lenders confidence and helps service members secure great deals.
They have no mortgage insurance. A mortgage insurance is a monthly fee a borrower pays with other programs “when you are not putting at least a down payment of 20 percent”. In VA loan, however, a mortgage insurance is not a requirement; the VA’s guaranty eliminates the need to pay for any mortgage insurance premium.