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)