If you’re like many people, you’ve heard of VA loans – but what are they, and who can use them?
What is a VA Loan?
A VA loan is a loan that’s guaranteed by the U.S. Veterans Affairs – it doesn’t actually come from the VA. Having the VA’s guarantee on these loans allows lenders to look more favorably at applicants that might not otherwise qualify for a loan.
Who Can Use VA Loans?
The Department of Veterans Affairs extend these benefits to buyers who are currently in the military or who have been honorably discharged from any branch of the U.S. Armed Forces. Sometimes dependents qualify for them, too.
What Can You Use a VA Loan For?
You can use a VA loan to buy a new home or an existing home. You can also use it to buy a home that you’re going to renovate while you live in it.
Benefits of VA Loans
If you buy a home with a VA loan, a lender can’t turn you down simply because your credit score isn’t as high as it would like. Instead, lenders must look at your entire financial picture before making a lending decision.
You also don’t need to come up with a 20 percent down payment if you’re buying a home with a VA loan – and you don’t have to pay for private mortgage insurance, either. (Most borrowers who buy a house with less than 20 percent down are required to pay for PMI, which protects the lender if you don’t make your mortgage payments.)
If you run into trouble making your mortgage payments, you may be able to get help from the VA to stay out of foreclosure.
Are You Buying a Condo in LA?
If you’re thinking about buying a condo in Los Angeles or a nearby community, call us at 213-254-7626 or contact us online.
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