Tips and advice to help Veterans and military families get the most from homebuying
Like the other government-backed home loans, VA loans are focused on helping borrowers purchase primary residences. The VA loan program isn’t intended to help people build an empire of rental properties or vacation homes.
One of the closing costs VA buyers usually contend with is prepaid interest on their new mortgage. Unlike rent, your mortgage is paid in arrears, meaning each payment covers the previous month you lived in the home, not the current one.
Prospective buyers can look to land a VA home loan using part-time income. But you’ll typically need a solid track record of receiving that income to make it work.
Veterans and service members can look to qualify for a VA home loan using retirement income, which is great news for many homebuyers. You will need to be able to verify this income in order to qualify for the home loan.
While it isn’t a common occurrence, veterans and military members may be able to purchase with a VA home loan through a revocable inter vivos trust.
Contracts to purchase homes often come with appraisal contingencies. These protect would-be buyers if the VA appraisal determines the home is worth less than what they agreed to pay.
When a homeowner puts their house on the market, they’ll prepare a packet of disclosures full of important information about the property.
Veteran and military homebuyers will need to have a "clear title" before purchasing a home. This means there aren't any liens, legal defects, or property disputes on the house you are trying to buy. This isn't an issue most of the time, but it's important to understand how it can halt your home buying journey.
Housing communities and developments with age restrictions have been around for decades. These are often gated developments or retirement communities with clubhouses, pools and other communal facilities, and typically at least one person in the household must be at least 55 years old.
Not all buyers will have a real estate agent to market their home. Purchasing a For Sale By Owner (FSBO) property can be an attractive option for many VA home buyers.
An incredibly powerful benefit of the VA home loan is military members' ability to use their Basic Allowance for Housing (BAH) towards their mortgage payments. BAH rates depend on several different factors, so it's crucial to verify your amount with the DOD.
Having flood insurance can save you from severe financial devastation. VA lenders typically require you to purchase a separate flood insurance policy before closing on your home loan.
Many first-time homebuyers are surprised to learn there isn't one uniform set of guidelines and requirements for a VA home loan.