Are you currently looking for a mortgage and think you qualify for a VA loan? It will help to know the following things about VA loans before you move forward with getting one.
Know If You're Eligible
The first step should be to determine if you are actually eligible for a VA loan. Start by requesting your DD214 form, which essentially is the certificate that showed you were discharged or released from active service. Your VA loan lender can look at this form and determine if you are eligible. This is because there are requirements that you must meet, such as years of active duty.
Know Your Down Payment
One of the nicest parts about getting a VA loan is that it does not require any sort of down payment if you do not have the money to give one. That said, a down payment is always helpful because it limits the loan amount that you are borrowing and the amount of interest that you pay over time. However, you may only have money for the closing costs related to your home purchase and need to put the money toward that, and you can do so with a VA loan. For example, you need to pay for a home inspection, your lawyer, title search, and things of that nature.
Know Your Eligible Property Types
While most people want to purchase a single-family home, know that a VA loan actually has several eligible property types. You can purchase a multifamily home that has up to four units and use this to generate rental income while you are living in one of the units. This can be a great way to fund your own mortgage payments while the other renters help contribute to your income.
Know Your Credit History
While VA loans have very forgiving credit requirements, it is still important that you know your credit history and clean up any problems that may be on it. It's important to fix things that are incorrect and lower your debt-to-income ratio because it will result in a better interest rate for you in the end if you prove that you have a good credit score.
Still have questions about getting a VA loan? Reach out to a lender in your area like Dominion Capital Mortgage that works with this type of mortgage product. They can answer any questions you may have about purchasing your home as a veteran.