As a veteran or active-duty military member, the benefits you’ve earned are more than just well-deserved; they’re a cornerstone to building the life you’ve worked so hard to protect. One such benefit is the VA home loan program. If you’re considering purchasing a home, refinancing an existing loan, or even building your dream property, VA home loans offer an excellent opportunity to make it happen.
In this article, we’ll cover the key benefits of VA home loans, eligibility requirements, and tips for working with local VA-friendly lenders in Nebraska.
Key Benefits of VA Home Loans
- Zero Down Payment: One of the most appealing features of VA loans is that eligible borrowers can purchase a home without the need for a down payment. This can significantly reduce the upfront costs of buying a home.
- Competitive Interest Rates: VA loans typically offer lower interest rates compared to conventional loans, saving you money over the life of your mortgage.
- No Private Mortgage Insurance (PMI): Unlike conventional loans, VA loans do not require PMI, further reducing monthly payments.
- Flexible Credit Requirements: VA loans are more lenient with credit scores, making homeownership accessible even if you’re still working on building your credit.
- Limits on Closing Costs: VA loans place restrictions on the types of closing costs that can be charged, making them more affordable overall.
- Loan Assumption: VA loans can be transferred to another eligible veteran or active-duty member, which can be a unique selling point if you decide to move.
Eligibility Requirements
To qualify for a VA home loan, you must meet one of the following criteria:
- Service History:
- Served 90 consecutive days during wartime, or
- Served 181 days during peacetime, or
- Have six years of service in the National Guard or Reserves.
- Spouse Eligibility: Surviving spouses of veterans who died in service or from a service-connected disability may also qualify.
Additionally, you will need to obtain a Certificate of Eligibility (COE) from the VA to confirm your qualification for the program. A VA-friendly lender can assist you with this process.
How to Find VA-Friendly Lenders in Nebraska
Selecting the right lender is crucial to a smooth VA loan process. Here are tips for finding local VA-friendly lenders:
- Ask for Recommendations: Fellow veterans and military members in your community can often recommend trustworthy lenders.
- Search for VA-Approved Lenders: Use the VA’s website to find a list of approved lenders in Nebraska.
- Evaluate Reviews: Check online reviews and ratings to identify lenders known for exceptional service and expertise in VA loans.
- Compare Rates and Fees: Even within the VA loan program, terms and fees can vary between lenders. Be sure to compare options to find the best fit for your needs.
FAQs About VA Home Loans
- Do VA loans have a loan limit? Yes, but as of 2020, veterans with full entitlement have no loan limits. For those with partial entitlement, the limits depend on the county and the amount remaining on the entitlement.
- Can I use a VA loan more than once? Yes! You can reuse your VA loan benefit multiple times, provided you’ve paid off the previous loan or restored your entitlement.
- Are there fees associated with VA loans? Yes, there is a funding fee, which helps sustain the program. This fee can be rolled into the loan amount and varies based on your down payment and loan usage.
- Can I use a VA loan for investment properties? No, VA loans are intended for primary residences only. However, you can buy a multi-unit property (up to four units) as long as you occupy one of the units.
- What happens if I default on a VA loan? While the VA loan program offers protections to borrowers, defaulting on a VA loan can still result in foreclosure. Reach out to your lender or the VA for assistance if you face financial challenges.
Your Next Steps
At LiteraryRoad, we are committed to helping veterans and active-duty military members navigate the home-buying process. Whether you’re exploring your options, seeking pre-approval, or ready to make an offer, our team is here to guide you every step of the way.
Contact us today to learn more about VA home loans and how we can assist you in achieving your homeownership goals in Nebraska.