VA Loans and how they work

September 15, 2021 by Tess Pitzer1
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Heroes San Diego, is now a nationwide service. We provide the tools and resources for all heroes, in order to help you buy or sell a home! Today, we would like to address questions that our Veterans may have on obtaining loans. There is an abundance of information out there, and it can be very overwhelming. We are going to talk about VA loans and how they work. Once you have some basic knowledge, it helps piece everything together. If you are interested in signing up for our weekly webinars, we will go much further in depth on everything. Then, you will also have access to our team that can answer all of your questions. Heroes San Diego is here to help make your dreams come true!

What are VA Loans and how do they work?

VA helps Servicemembers, Veterans, and eligible surviving spouses become homeowners. VA Home Loans are provided by private lenders, such as banks and mortgage companies. They guarantee a portion of the loan, enabling the lender to provide you with more favorable terms. Sometimes, you can buy a home with zero percent down! That is one of the wonderful benefits of using a VA loan.

Who is eligible for a VA Loan?

  • Generally, if you have completed at least 90 days of active duty service
  • You have at least 6 years of service either in the Reserves or National Guard,
  • Have served at least 181 days of active service during peacetime,
  • You have 90 cumulative days of active service under Title 10 or Title 32. For Title 32 service, at least 30 of those days must have been consecutive,
  • You’re the spouse of a military service member who either died in the line or duty, or as a result of a service-related disability.

VA Loans

What branches of the US Military are eligible for VA home purchase benefits?

All of the US Armed forces which consists of the Marines, Navy, Air Force, Army and Coast Guard. Also the special reserves and the National Guard are eligible.

VA Loan vs. Conventional Home Loans

VA loans are some of the only loans remaining that offer no down payment. With conventional loans, the buyer is required to provide up to 20% down, which can often make it too difficult to purchase the right type of home for your family. Since with a VA home loan there’s no private mortgage insurance, this can save hundreds of dollars a month over conventional loans, depending on how much you borrow. Because the VA loan is backed by the government, the rates are often much better than a conventional loan, which will save you a considerable amount of money over the life of your home loan. Lastly, the VA home loan has a more lenient lending policy, allowing you to qualify for a VA loan when you might not meet all the requirements for a traditional loan.

VA Loans

May a veteran join with a non veteran (ex. girlfriend, boyfriend, significant other) who is not his or her spouse in obtaining a VA loan?

Yes, but the guaranty is based only on the veteran’s portion of the loan. The guaranty cannot cover the nonveteran’s part of the loan. Consult the lender we arrange for you to determine whether they would be willing to accept applications for joint loans of this type. Lenders that are willing to make these types of loans will likely require a down payment to cover risk on the unguaranteed, nonveteran’s portion of the loan. Unlike other loans, the lender must submit joint loans to VA for approval before they are made. Both incomes can be used to qualify for the loan. However, the veteran’s income must be sufficient to repay at least that portion of the loan related to the veteran’s interest in (portion of) the property and the nonveteran’s income must be adequate to cover the rest.

How does Heroes San Diego help with obtaining a VA Loan?

Signing up for our weekly VA Homebuyer webinar is the first step. We will give you all of the tools and information you need to prepare for the home buying process. We are also here to answer any questions you may have. Once you are ready, we will guide you through the entire process, with our Real Estate Agent and Broker Johnny Perez. We will make sure to find you the home of your dreams! If you are relocating and need a home ASAP, we can also help you find your new home quickly.

Once you receive the keys to your. new home, you will also get a big check! Heroes SD rebate gives back on average $2,500 per transaction to the hero when purchasing a home. Most importantly, when purchasing a home, it is helpful to receive this rebate. But why give a rebate check? This is our way of giving back and saying thank you for your service and protecting our great Nation. Johnny Perez is an active Real Estate Broker. Mr. Perez gives back a portion of his commission that he receives from selling your home. Surprise!

Heroes

We hope that this information on VA loans and how they work was helpful. We are looking forward to meeting you and seeing you in the webinars! Let’s get you the home of your dreams!

 


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