May is Military Appreciation Month in the United States, and want to take the opportunities to honor and celebrate those who have served in the military.
Home ownership is a key fundamental of the American dream and the US Department of Veterans Affairs is making home ownership attainable and easy for those that served in the military branches, or is currently serving.
The VA provides four different types of loans to veterans and active personnel:
Purchase loan
Looking to buy a home? Find out if you’re eligible for a VA-backed purchase loan to get better terms than with a private-lender loan.
Native American Direct Loan (NADL) program
Are you a Native American Veteran or a Veteran married to a Native American? Find out if you’re eligible for a NADL to buy, build, or improve a home on federal trust land.
Interest Rate Reduction Refinance Loan (IRRRL)
Have an existing VA-backed home loan? Find out if you’re eligible for a VA-backed IRRRL to help reduce your monthly payments or make them more stable.
Cash-out refinance loan
Want to take cash out of your home equity to pay off debt, pay for school, or take care of other needs? Find out if you’re eligible for a VA-backed cash-out refinance loan.
The most common type of loan that is used for a home purchase is the VA’s Purchase Loan, and we will give you more details here from the benefits to what you can use it for.
What can you use the VA loan for?
- 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
Benefits
- 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
About ApexPro Real Estate
ApexPro Real Estate Group is a full-service real estate brokerage specializing in single family and attached Houston residential properties throughout Houston and the surrounding areas. We are a privately-held small business that brings together top agents, cutting-edge technology, and unparalleled service to help clients throughout Houston to buy and sell real estate — and enjoy themselves every step along the way. Our client reviews are exhibits our dedication to help our clients extends beyond the closing table and we would love to earn your business.