Before we get into what a VA home loan is, we should start with where it came from. The VA home loan was created in 1944. The United States government did this to help service members, veterans, and
eligible surviving spouses become homeowners.
Not sure what type of house you want? No problem! A VA loan can be used to purchase a single family home, a duplex, a condo, a manufactured home, and can also be used for a new build. Keep in mind that if you purchase aduplex with a VA home loan you will be required to live in one side. Notice that I didn’t mention investment property. That’s right, a VA loan is specifically for an owner occupied buyer.
To understand the full scope on what the requirements would be to qualify for this type of loan, it’s best to contact your lender or someone at your bank. If you want some references for a couple of local mortgage lenders in Green Bay, WI, contact me.
To name a couple of the many benefits of VA loans are the lower interest rate than the typical conventional financing, and ZERO down payment. You also don’t need stellar credit. Again, talk with your mortgage lender about the credit score requirements. An even bigger bonus with the VA loan is no PMI payments (private mortgage insurance). While the Department of Veterans Affairs doesn’t issue the funding, the VA does insure it.
Fun fact: The VA has helped more than 22 million veterans achieve their dream of owning a home. Are you next?