United States veterans and their spouses are offered benefits when it comes to taking out a loan for a home. Today we’re discussing those benefits and how you can utilize them to your advantage if applicable.
First, it should be noted that if you are a veteran, you maintain these benefits for life. Although, to understand how a VA loan works is the first step. You are not borrowing from the government but still a lender. Upon qualifying for a VA loan the government guarantees to pay for a portion of your mortgage. If you happen to default on a payment for your mortgage, the government will repay it for you up to a certain limit. This is the reasoning behind veterans’ ability to qualify for better terms and rates with a lender due to the guarantee that the government will repay the lender if you default.
As a veteran you can use this loan to buy a home, build a new home or even to make energy efficient improvements on your current home. However, you can not use the loan to buy a vacation home or investment property. There is not set a limit on how much you can borrow, but there is a limit how much of the loan it will guarantee repayment on.
VA loans are a wonderful program for those who have served our country. If you think that you may qualify for one of these programs, reach out to a loan officer and they will find something that works for you.