Why you might want to Use a Veterans Affairs (VA) loan?

Why you might want to Use a Veterans Affairs loan?

A VA loan often offers:

  • No down payment as long as the sales price isn’t higher than the home’s appraised value (the value set for the home after an expert reviews the property)
  • Better terms and interest rates than other loans from private banks, mortgage companies, or credit unions (also called lenders)
  • The ability to borrow up to the Fannie Mae/Freddie Mac conforming loan limit on a no-down-payment loan in most areas—and more in some high-cost counties. You can borrow more than this amount if you want to make a down payment.
  • No need for private mortgage insurance (PMI) or mortgage insurance premiums (MIP)
    • PMI is a type of insurance that protects the lender if you end up not being able to pay your mortgage. It’s usually required on conventional loans if you make a down payment of less than 20% of the total mortgage amount.
    • MIP is what the Federal Housing Administration (FHA) requires you to pay to self-insure an FHA loan against future loss.
  • Fewer closing costs, which may be paid by the seller
  • No penalty fee if you pay the loan off early

Am I eligible for a VA-backed purchase loan?

You may be eligible for a VA-backed purchase loan if you meet all of the requirements listed below.

All of these must be true. You:

  • Qualify for a VA-backed home loan Certificate of Eligibility (COE), and
  • Meet our—and your lender’s—standards for credit, income, and any other requirements, and
  • Will live in the home you’re buying with the loan

Clarksville VA Loans

If you qualify for a VA-backed purchase loan, you can use the loan to:

  • Buy a single-family home, up to 4 units
  • Buy a condo in a VA-approved project
  • Buy a home and improve it
  • Buy a manufactured home or lot
  • Build a new home
  • Make changes or add new features (like solar power) to make your home more energy efficient

You can also:

  • Get a VA-backed home loan to buy your first home
  • Use your VA loan benefit again if you sell or refinance a home you bought with a VA-backed home loan
  • Assume a VA-backed home loan (which means that instead of opening a new mortgage loan, the buyer takes over the seller’s loan)

Buying

Property Basics

Features

Tell us more about any home or neighborhood features that are important to you and your family

About You

This field is for validation purposes and should be left unchanged.