Do you qualify to get a VA Loan, but you do not know much about them? If so, you will likely have the following questions about this unique type of loan for people that have served their country.
Do You Need A Down Payment?
One of the biggest advantages of using a VA loan is that you do not need to provide a down payment when purchasing a home. This allows you to get past one of the biggest barriers of entry to buying a home, which is saving up enough money to meet the minimum requirements. However, there will still be some expenses associated with the loan that you need to pay, which are the closing costs. Thankfully, these are not much when compared to a minimal down payment for other types of loans.
How Many Times Can You Use A VA Loan?
Know that you can actually use a VA loan multiple times throughout your lifetime as long as you meet the criteria. If you are selling your home to buy another home, this is typically not a problem with using a VA loan again. Things get complicated when you are buying a second home without selling your first home, buying a very expensive home that is outside the VA loan limits, or buying and selling a home within a short period of time. Know that if you are given orders to move to a new location, you should not have a problem with any time limit requirements associated with a VA loan.
What Are The Debt-To-Income Ratio Requirements?
The debt-to-income ratio is how much debt you have when compared to the money that you make on a monthly basis. Lenders do have a certain ratio in mind when approving people for home loan, and will not allow people with too much debt to get a mortgage. The same rules apply to VA loans, with the debt-to-income ratio limit typically being around 41%.
How Do You Prove To A Lender That You Qualify For A VA Loan?
Be aware that lenders are not going to take your word that you qualify for a VA loan. It will be necessary to get a certificate of eligibility from your VA office to prove that you meet all of the requirements. You will submit this certificate with your mortgage application to prove that you qualify when the time comes.
Reach out to a local mortgage lender like Blake Mortgage for more information about VA loans.