Kopa Real Estate Blog

VA Loans are hotter than ever. Over the last six years, more and more veterans and their families have flocked to the security and unmatched buying power of these government-backed loans. VA purchase loan volume continues to climb, jumping to $271,804 loans in 2014 from just 180,758 in 2009.

A tighter credit market and sagging housing industry have fueled renewed interest in this long-cherished program. VA loans feature more flexible credit and underwriting standards than conventional loans. Qualified military personnel and veterans can purchase a home with no money down or private mortgage insurance.

According to the Mortgage Bankers Association, VA loans remain the safest lending option on the market. That combination of purchasing power and protection is pushing thousands of veterans and military personnel to explore the significant home lending benefits earned by their service.

One of our goals at Kopa Real Estate is to ensure we find the loan that best meets the unique needs of our buyers. In some rare cases, the answer isn’t a VA loan.

For example, veterans who can manage a 20 percent down payment might sometimes find conventional financing a better fit. VA loans also can’t be used to purchase investment properties or vacation homes. But, for the vast majority of military borrowers, VA loans are the most powerful and cost-effective loan program on the market. These government-backed loans come with significant financial benefits that help veterans purchase with no money down.

10 Things to know about the VA home loan benefit

1. They’re reusable
   You can use your full loan entitlement over again. It’s even possible to have two at the same time.
2. They’re available despite foreclosure or bankruptcy
   Veterans with a history of bankruptcy or foreclosure can still secure a VA home loan.
3. They’re for primary residences only
   Don’t bother trying to use your VA loan benefits to buy an investment property. VA loans are for primary residence, with few exceptions.
4. They don’t have a pre-payment penalty
   You can make extra payments any time you want, saving interest over the life time of your loan.
5. They’re guaranteed by the government
   If you have a VA entitlement, the agency guarantees up to a quarter of the loan amount. This helps service members secure great terms and rates.
6. They come with mandatory fee
   The VA funding Fee helps keep the program going and is required on all VA loans. It can be waived for those with service-connected disabilities.
7. They’re only for certain homes
   The VA loan is designed for single-family homes in move-in ready condition. You can not use them to purchase a fixer-upper or a place of business.
8. They’re not issued by the VA
   The VA does not issue home loans. Instead, it provides a guaranty on each qualified loan.
9. They have limits on co-borrowers
   The only acceptable co-borrower is your spouse or another eligible veteran who also lives in the home.
10. They don’t have mortgage insurance
    The VA guaranty eliminates the need for the mortgage insurance or mortgage insurance premiums, so borrowers save even more money each month.

If you have any questions about VA loan please call/text me at 512-791-7473 or send an email to eric@koparealestate.com.

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