You have served your country well and now its time to enjoy your hard-earned awards. Buying your dream home with the help of your deserving VA loan benefits can be one of the most fulfilling financial dealings of your lifetime. Backed by the government, VA loans do not attract any down payment. They are more forgiving and flexible than the other types of home loans available in the marketplace. Another attractive feature of the VA home loans is that there is no mortgage insurance to worry about. On the whole, these loans succeed in opening up a host of opportunities for service members, veterans and surviving spouses who may be left out otherwise.
However, even though the application process may be less cumbersome than that of other loan types, all those applying may not be eligible for the VA loan. From having a steady income to high creditworthiness, there are many things at stake. Given these criteria, it pays to get your facts in order and apply for a VA loan only after due considerations. Here are some basic yet effective tips related to the VA loan procedure that you should be aware of.
Tips to Getting VA Loan Benefits
At the very onset, you should not allow the documentation to stand in your way of gaining the home VA loan. Next, according to Bruce Glassinger from VAloanlending.com, you should try to pay VA loan closing costs like property taxes and mortgage insurance out of pocket in order to decrease the interest amount. You must also consider the requirements of the lenders in the pre-approval phase and provide full support to prevent any denials.
Your Credit Report Matters
While you don’t need a perfect credit score to avail of a VA loan, your creditworthiness would still matter. Your credit history will be assessed when you set out to apply for your home loan. A credit score of 620 is sought for by most VA loan lending companies. This is quite low in comparison to the score needed for FHA financing or conventional loans. The higher your credit score, the lower will be the rate of interest applicable to the VA loan procured by you.
Acceptable Uses – What are They?
The VA desires veterans opting for this program to refinance or purchase their primary residences only. They cannot purchase vacation homes, properties for investment / reselling purposes, any type of income-producing properties, working farms, etc. from the proceeds of this loan. If you are hoping to buy a modular home, single-family residence, manufactured home, multiunit property, or a condominium, it’s okay with the VA – this is provided you’re planning to stay in it.
Understand the requirements of occupancy
To add further credence to the requirement of primary residences by the VA, there are certain occupancy requirements as well. For instance, once you’ve purchased your new home, you’re expected to occupy it as your primary place of residence in a span of 60 days. There are certain exceptions to the laid down rules; however, at most times, the regulations have to adhere to the fullest.