A VA loan is a type of mortgage loan available to veterans, service members, and eligible surviving spouses. It is a government-backed loan that is issued by private lenders but is guaranteed by the Department of Veterans Affairs (VA). The VA loan program was created to help veterans obtain homeownership and is considered one of the best mortgage options available.
The following are the features of VA loans:
- No Down Payment Required: VA loans do not require a down payment, which make it easier for veterans to become homeowners.
- No Private Mortgage Insurance (PMI): VA loans do not require PMI, which can save borrowers a significant amount of money each month.
- Competitive Interest Rates: VA loans typically offer better terms and interest rates than conventional loans, making monthly mortgage payments more affordable.
- Flexible Underwriting: VA loans offer more flexible underwriting criteria, which make it easier for veterans to be approved for a loan, even if they have a lower credit score or income.
- No Prepayment Penalties: VA loans do not have prepayment penalties, so borrowers can pay off their loan at any time without incurring additional fees.
- Eligibility: You (or your surviving spouse) must have served in the military and have a valid Certificate of Eligibility (COE).
- Limits: VA loans have loan limits, which vary by county. In general, the maximum loan limit for a VA loan is $548,250, although it can be higher in certain areas.
How Many Times Can You Use A VA Loan?
VA loans do not have a limit on the number of times you can use the loan benefit. However, there is a limit on the amount of money the VA will guarantee, which is referred to as the VA loan limit. It is important to remember that if you sell your home and use the proceeds from the sale to purchase another home, you may need to restore your eligibility before you can use the VA loan benefit again.
If you are a veteran who has previously used a VA loan, it is a good idea to work with a lender who is knowledgeable about the VA loan program and can help you determine if you have any remaining eligibility.
If interested in a VA loan, discuss your plans with one of Sovereign Lending Group Incorporated mortgage professionals. They’ll help you determine your eligibility, and they will guide you through the process.