VA Home Loan Facts .pdf
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7 Must-Know Facts About VA Loans in Texas
The VA loan program is one of the most powerful lending program in the U.S. It has helped
millions of veterans, military families, and service members achieve their dream of owning their
own home. Although numerous veterans go for this program, however, not all veterans are
familiar with the program and its benefits. If you too are planning to go for a VA loan, read this
blog post, to learn some of the facts about VA loans and its benefits.
1. Can be Reused
VA loans are reusable, which implies that the eligible VA loan borrowers can reuse the VA
entitlement as long as they pay off their loan each time.
2. Valid for Primary Residence
Most people have this misconception that they can use VA loan to buy a property elsewhere.
Barring a few exceptions, VA loans are applicable only for primary residences.
3. Applicable on Selective Properties
VA loans do not cover all types of properties, they are applicable selective types of homes, such
as condos, single-family homes, multi-u it p ope ties, odula housi g, a d othe such eadyto-move-i p ope ties.
4. VA does not Lend VA Loans
This is yet another common belief that the U.S. Department of Veterans Affairs (VA) issues VA
loans. Contrary to the common belief, VA does not issue the loan. It, however, provides
guarantee on each qualified loan.
5. No Prepayment Penalty
In VA loans, you can pay extra and in advance with no prepayment penalty. These additional
payments can be made over the life of your loan or sooner to save your loan interest.
6. Does not Include Mortgage Insurance
Va loans do not involve monthly mortgage insurance payments, which in most other loans is
e ui ed whe you e ot payi g at least 20 pe ce t of the dow pay e t o a ew o tgage.
7. Includes Funding Fee
Although there are no monthly mortgage insurance payments in VA loans, however, it includes
a mandatory funding fee. This payment is just 2 percent of the loan amount and is required on
both purchase and refinance VA loans.
Last Few Words
VA loans provide a great opportunity and benefit to millions of people who have served their
country to be homeowners. As compared to conventional loans, VA loans undoubtedly offer
great benefits without any unnecessary complications. There are, however, particular
guidelines, terms, and conditions that the eligible borrowers must agree and obey to avoid any
complications in future.