If you plan on buying a home using a VA loan, there are three things you must know.
Before we elaborate on these points, though, we would like to extend our sincerest thanks to all of our nation’s service members and their families. Without each of you, we wouldn’t have the opportunities in life we do today.
With that said, let’s take a look at the three things you should know when purchasing property with a VA loan:
1. VA loans do not require a down payment. However, you will need to provide funds for closing costs, and the property must be purchased as a primary residence.
2. VA loans do require a funding fee. You will have to pay 2.15% of the loan amount to the VA program. If you use a VA loan a second time, this funding fee will be 3.3%. Keep in mind, though, that this fee will be waived for veterans with disabilities recognized by the VA.
3. VA loans are assumable. This is awesome, because, with interest rates and home values on the rise, your home may be more appealing to buyers if you choose to sell in the future.
Now that you understand these three facts, we’ve also got a bonus point to share with you all. Did you know that you can purchase more than one home using the VA loan? While it is true that VA loans must be used to purchase a primary residence, you can still make a second purchase down the line on another primary residence. Best of all, you may keep the first home you purchased using VA financing.
If you have any other questions or would like more information, feel free to give us a call or send us an email. We look forward to hearing from you soon.