Life can be quite challenging and it can throw anything at you. IT is better to be prepared and well equipped with all the things to tackle life. One of such things is a loan. Even though the concept of a loan seems simple, there are a lot of things that a person needs to take care of before he or she can get one.
What is a VA loan?
A VA loan is a special kind of loan that is eligible for veterans. Surviving members of the family and members who are active in service are eligible for this loan. These loans come with a lot of benefits like a lower mortgage.
Here are some things that you need to be aware of before getting a VA home loan.
- Eligibility: Not everyone is eligible for a VA loan. Only those who have served the country or members of surviving or active officers are eligible for the loan.
- Financing: VA loan programs are lax in their financing limits and can finance a project of up to 100 percent. The limit varies from country to country though.
- Documentation: Even though veterans get relaxation on the mortgage, they still need to provide their full documentation before getting the loan. DD214 and COE forms are required to prove the military background and a statement from the commanding officer too. W2 forms for the last two years are required as proof of no pending dues.
- Credit: VA loans don’t have a minimum credit requirement and you can get a loan even with a low credit score. However, it is still better to check with the lender beforehand.
- Property zypes: VA Home Loans San Diego applies to all sorts of property including houses, condos, or any other units. It is better to check up with your service provider though.
- Closing Costs: Even though a VA loan does not have a down payment associated with it, there is still a closing cost like other loans. However, the closing cost cannot be more than 1 percent of the loan.
- Entitlement: VA loans have three types of entitlement: Basic, second-tier, and full entitlement. A qualified veteran can take the loan 4 times and have more than one house bought from a 4 loan.
VA Home Loans San Diego is a great way to secure your future without much hassle. Our veterans deserve some perks in life and this is one of them.