Veterans have served our country and put their lives on the line to protect our freedom. They have made many sacrifices, including leaving their families behind, to serve. Because veterans often have difficulty finding employment when they return to civilian life due to their military training not being transferable to the civilian world, it can be difficult to support themselves and their families. The VA loan allows veterans to purchase a home with no down payment and low interest rates, which can help them immensely. But what type of home can veterans get with a VA home?
If you’re a veteran looking to buy a home, be sure to ask your lender about how to apply for a VA loan and read on to learn more about the type of home you can purchase!
The Benefits of a VA Loan for Veterans
If you are a veteran, leveraging a VA loan when buying a home just makes sense. For one, VA loans offer competitive interest rates and terms, which can save veterans money over the life of the loan. Additionally, VA loans do not require a down payment, which can make homeownership more affordable for veterans.
Another advantage of VA loans is that they are backed by the federal government, which makes them more secure than other types of loans. This means that if a veteran defaults on their loan, the lender will not be left holding the bag.
VA loans also offer flexible qualification standards, which can make it easier for veterans to obtain financing.
VA Loan Qualifications
If you’re a veteran planning to buy a home, you may be wondering if you’re eligible for the VA home loan program. VA loans are available to qualified veterans, reservists, and active-duty service members, and offer several benefits that other loans don’t.
To be eligible for a VA loan, you must have served at least 90 days of active duty during wartime, or at least 181 days of active duty during peacetime. You must also have been honorably discharged from your service. If you’re still in the military, you may be eligible for a VA loan if you meet the service requirements.
Once you’ve established your eligibility, there are a few things you’ll need to do to get a VA loan. First, you’ll need to get a Certificate of Eligibility (COE) from the VA. This can be done online, by mail, or through your lender. You’ll also need to provide proof of income, employment history, and credit history to get approved for a loan.
If you’re considering a VA loan, be sure to compare it to other types of loans before you decide. VA loans may be the right choice for you, but only if you understand the terms and conditions. Work with a lender that specializes in VA loans to get started.
The Type of Home You Can Purchase
The type of home that a veteran can get with the VA home loan program will depend on their eligibility and credit score. If a veteran is eligible for a VA home loan, they may be able to get a traditional mortgage, or they may be able to get a VA-backed loan. A VA-backed loan is a loan that is guaranteed by the Department of Veterans Affairs. Veterans who have good credit scores may be able to get better interest rates on their loans.
Veterans who are interested in getting a VA home loan should contact their local VA office or an approved lender. Veterans can also visit the Department of Veterans Affairs website for more information about the home loan program.
Common Things that People Use VA Loans to Finance
While there are some general guidelines that all lenders will follow, ultimately, it’s up to the lender to decide what they’re willing to finance. That means that if you can find a lender who’s willing to finance your purchase, you can use a VA loan to buy just about anything.
- A home: This is the most common use for a VA loan. You can use your loan to buy a single-family home, a multi-family home, or even a condo. If the property is for your personal occupancy, you can finance it with a VA loan.
- A land purchase: If you’re looking to buy a piece of land to build your dream home on, a VA loan can be a great option. You can also use a VA loan to finance the purchase of a vacant lot that you plan to build on in the future.
- A manufactured home: Manufactured homes are eligible for VA financing if they’re permanently affixed to a foundation. That means that if you’re looking to buy a mobile home or a modular home, you should be able to finance it with a VA loan.
- A rental property: You can also use your VA loan benefits to buy a rental property. You can live in one unit and rent out the others, or you can rent out the entire property. Just be sure that you follow the VA’s occupancy requirements.
- An investment property: If you’re looking to buy an investment property, a VA loan can be a great choice. You can use your loan to finance the purchase of a duplex, triplex, or fourplex, and then rent out the units to generate income.
What You Can’t Buy with a VA Loan
There are some restrictions on what types of properties you can purchase with a VA loan. For example, you cannot use your loan to finance the purchase of a second home or vacation home. Additionally, you cannot use your loan to buy a property that will be used as an investment property (i.e., you cannot rent out the units).
Additionally, there are some restrictions on what you can do with the property after you buy it. For example, you cannot use your VA loan to buy a fixer-upper and then immediately turn around and sell it for a profit. There are also restrictions on how long you must live in the property before you can sell it. These rules are put in place to prevent people from using their VA loans to speculate on real estate.
If you’re a veteran, a VA loan can be a great way to finance just about any type of property purchase. Talk to a lender today at Financial Concepts Mortgage in Oklahoma City to learn more about what you can buy with a VA loan.