While VA loans in Tucson, AZ, are one of the most used mortgage options available to veterans and active men and women in uniform, not all eligible service members use them to their full advantage. The key is to have a good understanding of how VA loans work so one can get optimum benefits.
If you are considering VA loans in Tucson, AZ, here are some facts that can come in handy for your home purchase:
Not all properties are eligible. You must know what type of home property you are planning to buy. If not, you might spend time and resources processing only to discover that your target property has a VA loan eligibility issue. For instance, co-ops are not eligible for VA loan benefits. Vacant land is not qualified if it is not used simultaneously with a construction loan.
The property must be your primary residence. The home property you are buying should become your primary residence. In other words, you can not use your VA loan benefits to buy a vacation home or investment property.
No prepayment penalties. If you have some extra cash, you can make payments throughout your loan and pay off your premium sooner without penalties. That can save thousands of dollars in interest over the life of your mortgage.
You can use your VA loan as often as you would like. As long as you pay off your existing loan, you can use your VA loan benefit again – as often as you would like.
No mortgage insurance. Unlike other loan programs, VA loans do not require you to pay for insurance – even if you have no cash set aside for a down payment.
VA loans are not VA-issued. The VA guarantees the loan. In other words, the VA assures the lender of coverage of the part of that loan should the borrower fail to tackle the loan obligations and default.
Online looking for a reputable company that offers VA loans in Tucson, AZ? Talk to a mortgage expert at HomePlus today.