Borrowing as a United States Veteran
Veterans and their spouses are offered benefits when it comes to borrowing money for a home in the United States. Today, we’re discussing some of those benefits and how you can utilize them to your advantage if applicable.
It should first be noted that if you are a veteran, you maintain these benefits for life. To understand how a VA loan works is the first step. You are not borrowing from the government, still a lender, but upon qualifying for a VA loan the government guarantees payment for a portion of your mortgage. If you default on a payment for your mortgage, the government will pay it for you up to a certain limit. With that being said, you’re able to qualify for better terms and rates with a lender due to the guarantee that the government will make the repayment if you default.
VA loans can be used to buy a home, build a new home or even to make energy efficient improvements on your current home. However, you can’t use a VA loan to buy a vacation or investment property. Additionally, the VA does not set a limit on how much you can borrow from a lender, but it does limit how much of the loan it will guarantee payment on.
Overall, the VA loan is a wonderful program to offer benefits to those who have served our country. If you feel that you qualify for one of these programs, reach out to a loan officer and they will find something that works for you!