Just like in any other transactions, it can be a big help if you have prior knowledge on a deal that you plan to get yourself involved in. Applying for VA loans, Jacksonville, FL is no exception. In other words, you need to have enough knowledge before you navigate the widely considered ‘murky’ water of the mortgage market.
Here some important things that you need to know about VA loans:
- They are reusable – Your full VA entitlement can be used over and over again provided that you faithfully pay off your loan each time. However, still, you may be able to get another VA loan even if you have lost one to foreclosure or presently have one.
- They are not issued by the VA – This agency only provides a guarantee on every qualified mortgage loan; issuing home loans is not their business
Available in spite of foreclosure or bankruptcy – Men in uniform who have bankruptcy history can be granted with a VA loan. In fact, even borrowers who have had a VA loan foreclosed on can still benefit from it.
- They are guaranteed by the government – The government guarantees up to a quarter of the loan amount if you have a VA entitlement. This can boost your chances of approval as this gives lenders confidence and will help borrowers get great deals on mortgage.
- The purpose of VA loans is for primary residences only – Meaning, if the purpose of buying a home is for investment or to make it a vacation home, this is not the type of loan you are looking for. So get rid of this goal. This loan is designed for to get a property that you will be living in a long time.
- VA loans have no mortgage insurance – In other types of loan, when you do not put at least 20% down, you are going to pay this monthly fee called mortgage insurance. In VA loans, Jacksonville, FL, however, the guarantee from the government eliminates such payment, which could help borrowers save a great deal of money each month.
For more questions about VA loans, Jacksonville, FL, contact us here at HomePlus Mortgage at (512) 949-3385.