Although VA loans, Fort Walton Beach, FL, requires a handful of steps to accomplish, there are many things about it that potential borrowers – and agents – do not know.
If you are planning to apply for VA loans, knowing the following will come in handy when making a home purchase decision in the future. Consider the following:
They are reusable – Yes, you can use your full VA entitlement not just once or twice but multiple times for as long as you pay off the loan each time.
There are specific requirements on what type of home to purchase – VA loans, Fort Walton Beach, FL, is designed for properties that are in a ready-to-occupy condition, which can include single-family homes, condos, modular housing, and more. If your goal is to purchase a working farm, this type of loan isn’t for you.
They are for primary residences only – If the goal of your buying is for investment or for getting a vacation home, then this loan type isn’t for you. Since it is for primary residences, you need to live there. But, if you plan to buy a multi-unit property, you can do so, provided you live in one of the units.
The VA does not issue loans – The VA only provides a guarantee on each of the qualified mortgage applications, and not as an agency that does the business of home loans.
The government guarantees VA Loans – If you qualify, you can expect that VA guarantees up to a quarter of the loan amount. This advantage gives service members to get ideal terms and rates.
They are available despite foreclosure or bankruptcy – This means that a service member who has a history of bankruptcy or foreclosure can still secure a VA loan.
Prepayment penalties are not applicable – Why is this advantageous? Because you can make extra payments any time you want and save a significant value in interest over the life of your loan. You can even structure your pay so that you automatically deduct some extra amounts from your account into your monthly obligation.