There is no doubt that VA mortgages are one of the most powerful lending programs present in the market today. A VA mortgage loan is a mortgage loan that is granted to veterans by the department of veteran affairs, the loan is primarily issued by multiple qualified lenders. These VA loans have been designed in a manner that provides the veteran a standard home mortgage without any requirement of a down payment and has the lowest rate of mortgage payment.
However, many veterans unfortunately do not have the knowledge required to truly enjoy the lucrative benefits of VA mortgages. This is exactly why we have carefully articulated a list of the most frequent asked questions regarding VA mortgages. The following questions will clarify any ambiguity that encompasses VA mortgages:
1. Are VA mortgages reusable?
The first and most common question veterans have about VA mortgages is whether they are entitled to use the benefit multiple times. To simply put it, yes, they can re-apply for a VA mortgage. Veterans can apply for these loans multiple times during their life span. So, if the veteran unfortunately loses his or her home due to foreclosure, then they can apply for a new loan without any hassle.
2. Are VA mortgages only available for certain types of property?
Yes, VA mortgages are limited to certain types of properties. Under a VA mortgage, a veteran cannot purchase property such as farms or homes that require repairs. These loans are only available for homes that are ready to move in.
3. Are they for primary residence only?
Yes, VA mortgages are only for primary residence only. A veteran cannot use this loan to purchase property as an investment or vacation purposes.
4. Are the loans issued by veterans?
Only qualified lenders can issue VA mortgages. These lenders have to receive permission from the department of veteran affairs, these lenders are normally financial institutions such as banks.
5. Is every veteran entitled to a VA mortgage?
Yes, every veteran is entitled to a VA mortgage. However, there are certain pre-requisites that have to be met in order to be eligible for these loans.
6. Are they available despite the veteran facing foreclosure in the past?
Normal home mortgages are extremely difficult to obtain if the applicant has a previously faced foreclosure due to non-payments. However, a veteran can easily obtain this loan even if they have faced foreclosure in the past.
7. Does a veteran require mortgage insurance?
No. Unlike standard loans, the veteran does not require mortgage insurance in order to obtain a VA mortgage.
8. Is there a mandatory fee involved?
Yes, there is a mandatory fee involved but this is only 2% of the actual loan. This amount is used to help the VA kickstart the loan and can also be used in refinancing mortgage loans.
9. Can a spouse of a veteran obtain a VA mortgage?
Yes, the spouse of a deceased veteran can easily obtain a VA mortgage to finance a new home. However, if the spouse remarries then they cannot obtain such a loan.
10. Can a veteran pay the loan off early?
Yes. The veteran can easily pay off the loan early without incurring any penalty fees. Standard mortgages have a certain percentage that is charged if the loan is paid off earlier then the prescribed life span.
If you have any more questions regarding VA home loans in Orlando FL or adjacent areas, please contact Booyah Mortgage. This veteran operated financial institution strives to help veterans find the home of their dreams in a hassle free manner.