3 Important Questions about VA Loans
As a Mortgage Broker and also a Veteran, it’s only natural that most of the work I do involves VA Loans. The VA mortgage program is by far the best loan program widely available to first time home buyers in the Fort Campbell and Clarksville, TN area. If you are eligible for a VA Home Loan, in almost every circumstance it makes sense to use it.
I get asked a lot of questions from veterans on a daily basis about the benefits of the VA loan or certain intricacies involved with the program. Below I will answer the three of the most common questions associated with Veterans who are First Time Home Buyers.
How many times can I use my VA loan?
You can use it as many times as you want, there is no limitation on the number of loans you can take out in your lifetime or the number of VA Mortgages you can have outstanding at any given time. The only use limitation is that you cannot have more than $417,000 worth of VA loans at any given time in order to use your VA benefit in it’s full capacity. I am personally on my second VA Loan right now.
Will I have to make a down payment or pay closing costs in order to purchase a home with a VA loan?
This loan program is a true no down payment/no contribution vehicle to get you into a home.
Furthermore, here in the Fort Campbell and Clarksville markets, it is customary for sellers to pay for a buyers closing costs as part of the sale of the home. This feature MUST be negotiated into your contract to purchase the home, however so make sure to double check with your Realtor.
With no down payment to worry about and the seller paying your closing costs, it is ALWAYS cheaper up front to purchase a home with a VA loan than it is to rent a house or apartment. Here in the Clarksville market, it is also almost always cheaper to own with a VA mortgage than rent on a month to month basis as well.
Do I have to pay monthly Mortgage Insurance or PMI with a VA Loan?
VA loans do not require PMI or monthly mortgage insurance payments. A small guaranty fee is financed as a part your VA loan at closing which takes the place of PMI. Since you are not paying an extra amount of money every month for mortgage insurance, VA Mortgages are almost always cheaper on a per month basis than FHA or Conventional Loans.
If you are a veteran with more questions about your VA Loan benefits or buying your first home in Fort Campbell, Clarksville or any part of the middle Tennessee area, please contact me at 931-896-2903 or visit our Home Loans for Veterans Resource Center.
Eagle Home Loans LLC