VA loans are often considered to be one of the best loans on the market if you’re eligible for one. These loans are different than conventional mortgages due to the backing of The Department of Veterans Affairs, which raises the confidence levels of private lenders to allow for $0 financing as well as good rates and terms. The problem is that many eligible veterans don’t realize how beneficial this loan is and often pass it by. Check out a few of these commonly not known aspects of VA loans and see why you might be missing out.
No Down Payment
The main draw of a VA loan that people don’t often realize is that they don’t require any sort of down payment. While typical mortgages require you to have at least a 3.5% down payment (and sometimes higher), a VA loan doesn’t ask this of you, meaning you can be potentially saving thousands of dollars. Not only does this save you money, but it saves you time as you don’t have to take the time to save up for that down payment. No down payments also mean no mortgage insurance fees, so you save even more money and have the ability to be more flexible with your purchase options.
You’ll Always Have Your VA Loan Benefit
Another thing people don’t often realize about their VA Loan is that once you get it, it never goes away. Ever. This means that once you’ve earned eligibility you can use it whenever you want without having to worry about it expiring in addition to being able to use the loan more than once. You’ll be able to use the VA loan again if you sell the home you used it for the first time and pay it off completely, and this can be done multiple times. There is also a way to keep your home, pay off the loan, and get a one-time restoration of your benefit if you purchased your home a long time ago.
They Can Be Used To Buy, Refinance, or Tap Into Home Equity
Another great benefit that people often don’t realize is that VA loans can be used for more than just buying a home, such as refinancing an existing mortgage. If you’re a homeowner with a VA loan, you can also use the Interest Rate Reduction Refinancing Loan (IRRRL), which allows individuals to drop their rate and payment without any type of appraisal or proof of income. This is often called the VA streamline refinance and people can use it without having a VA loan, such as with a VA cash-out refinance which allows you to turn your home’s equity into cash by taking out a bigger loan than what you currently owe.