Unfortunately, not many veterans are aware of the benefits that they have earned, which includes the benefit of using a VA home loan in order to buy a home. There are many questions that surround this benefit that sometimes even lead to some veterans feeling too overwhelmed to begin the process of it. Here are four questions answered about VA home loans that can help you better understand the benefit and how to take advantage of it:
- What is Needed to Apply? The only thing that is needed to apply is your certificate of eligibility, which you can obtain from the VA. If you aren't sure how to do this, you can actually go to the lender you are wanting to work with on the home loan approval and have it requested for you. This makes it a bit easier, and from there, you can easily start on the process of obtaining a VA home loan. Just be sure that you take advantage of this loan rather than getting talked into obtaining a different loan type. After all, it's better since you will not be required to put down any down payment.
- Will Your Credit be Accounted For? One of the problems some vets have is that they cannot use their benefits for a VA home loan because their credit scores are too low. While you will need to have decent credit, you also don't need to worry about a down payment, so you can use those savings to repair your credit. Plus, many places offer veterans free financial help to fix their credit, so you are able to apply for a VA home loan as soon as possible.
- Can You Use a VA for Investment Property? If you weren't aware of the VA benefits when you purchased your first home and you want to use it to pay for an investment property, this, unfortunately, cannot be done. The only thing you can come close to is by purchasing a home that you rent out with a VA loan, but it will have had to be a home you lived in for at least some period of time.
- Can You Refinance? One reason some people are skeptical on VA loans is because many people aren't sure whether or not they can refinance the home later on. The answer to this is that you actually can, and it's often less expensive and doesn't require the same amount of paperwork as general refinancing options do. This is because those who have a VA home loan on their house can actually use a refinancing option that is called a VA streamline that can help out with this in an easier way to possibly lower your rates.
With these four questions answered, it might just be easier to understand the benefits of a VA home loan and why it's worth looking into if you qualify. After all, it's something you have earned and deserve to use. Contact a company like GRT VA LOAN for more information and assistance.