Are you considering buying a house with a VA loan? If so, this is an excellent choice for you if you qualify. Fortunately, it's easy to know if you qualify or not. If you have any military experience, either currently or in the past, you meet the criteria. You will also have to meet specific guidelines, as with any loan program. If you meet the guidelines and are considering a VA loan, here are the top five things you should know about them.
1. You Can Finance 100% of the Home Purchase
One reason people choose VA loans is to buy a home without having money to put down on the purchase. VA loans are one of the few loan types that allow you to finance 100% of the purchase price. If you buy a house for $160,000, you can finance the entire $160,000. You won't need a down payment. You can, however, put money down if you would like to, and there are benefits of putting cash down. You do not have to, though, to be eligible for one.
2. You Can Even Add in the Closing Costs and Fees
As with any mortgage loan, you will have to pay closing costs and fees. The good news is that you do not have to pay these expenses upfront. Instead, you can add them to your loan. Therefore, if you have $10,000 in closing costs and are buying a $160,000 house, you can finance the entire $170,000. You wouldn't need a penny to close on the deal.
3. You Can Get More Than One
Another thing to know is that you are still eligible to get a VA loan if you had one before. There is no limit on the number of VA loans you can have during your lifetime. There are restrictions on how many you can have at once, though.
4. You Must Pay a Required Fee
The fourth thing you should know is that there is a required fee to pay with a VA loan. This required fee is a funding fee that you must pay to the Department of Veterans Affairs. The funding fee helps the VA provide more loans to military workers, and you cannot avoid paying this expense.
5. You Don't Need Perfect Credit
Finally, you should realize that you don't need perfect credit to get a VA loan. As long as your score is at least 620, you shouldn't have a problem qualifying.
If you are still interested in a VA loan, you can learn more about them by contacting a lender that offers them.
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