For the vast majority of military borrowers, VA loans represent the most powerful lending program on the market. These flexible, $0-down payment mortgages have helped more than 24 million service members become homeowners since 1944. The strength of the VA Loan comes from the specific financial benefits this type of loan provides compared to other mortgage loan options. These benefits are the reason why VA loan volume has grown exponentially over the last decade.
We’ve gone over the main benefits of a VA Loan, so here are some facts you may not know.
1. The VA Loan is reusable.
You can use your full VA entitlement repeatedly if you pay off the loan each time.
2. Your benefit never expires.
Once you have earned eligibility for the VA home loan, it stays. Those who served 20, 30, or even 50 years ago often wonder whether they can still buy a home today if they never used their benefit. If you can establish eligibility, the answer is yes.
Base your eligibility on the length of time served and the period in which you did. For instance, a U.S. Army Veteran with at least 90 days in service during the Vietnam era is likely eligible.
3. The VA does not issue the loan.
The VA isn’t in the business of giving home loans. Instead, the agency provides a guarantee on each qualified mortgage loan.
4. Surviving spouses can be eligible.
To get a VA-backed home loan as the surviving spouse of a Veteran, you’ll need a Certificate of Eligibility (COE) to show your lender that you qualify for this benefit. Remember that your lender will have credit and income requirements you will need to meet.
5. VA Loans are available from local lenders.
The VA home loan is unlike most other VA benefits. This benefit is available from private companies, not the government itself. The Department of Veterans Affairs does not take applications, approve loans, or issue funds. Private banks, credit unions, and mortgage companies do that.
The VA provides insurance to lenders. It’s officially called the VA guaranty. The VA assures the lender that the loan will be paid if the Veteran can no longer make payments. In short, a VA loan gives you the best of both worlds. You enjoy your benefit but have the convenience and speed of working with your chosen lender.
VA home loans are among the most rewarding benefits available to veterans, active military, and their families. Are you a member of the military community? If so, you’ve earned these VA loan benefits, and the GoVA team is committed to being your partner on the path to homeownership.
GoVA Inc. began in 2019 when our CEO and founder, Phil Jawny realized he could give back to the military community. Our mission is simple; we are devoted to being a trusted and credible resource for all military community members.