Is Now the Time to Buy? When to Use Your VA Home Loan

Apr 2, 2020 | VA Loans

Is Now the Time to Buy? When to Use Your VA Home Loan

For military members and veterans alike, finding a house to call their own is a wonderful investment. While a VA home loan will certainly help you accomplish that goal, there may be times that using this benefit might not be in your best interest. If you’re trying to decide if now is the time to buy and are getting ready to explore your home loan options, don’t rush. You need to do what’s in your best interest. Here’s when you should use your VA loan to buy a home and when it might not be the best idea.

When You Should Use a VA Home Loan

In many instances, veterans benefit more from using VA loans to buy a house. If you find yourself nodding along with these points, use your VA loan instead of taking out a traditional mortgage.

You Don’t Have Money for a Down Payment

The biggest draw of VA loans is that you don’t need to have a down payment to qualify for the loan. With most traditional mortgages, you need to have about 20 percent of the purchase price of a home saved up to qualify for a loan in the first place. A VA loan lets you borrow the full amount of the purchase price without penalty.

Your Credit Is Less Than Stellar

If you don’t have great credit, you could end up with a higher interest rate on a traditional mortgage. This is because banks use credit scores to decide if you’re a risky borrower. Since VA loans are guaranteed by the government, banks put less emphasis on credit scores and will give you a fair rate even if your credit score is low.

When You Should Use a Standard Mortgage

There are times that a traditional mortgage may be a better fit.

You Have a Down Payment Up Front

If you already have a 20 percent down payment saved up, it’s worth comparing both VA loan and traditional mortgage rates. A standard mortgage could end up saving you money over the life of the loan.

You’re Buying a Vacation Home

Unfortunately, you can only use a VA home loan to buy a house you plan to use as a primary residence. If you’re buying a vacation home or an investment property, you’ll need to apply for a traditional mortgage.

Get More Information

The best way to decide which type of loan is best for you is to speak with an expert. Contact us today to discuss if a VA home loan is the right choice for your needs.

First-Time House Buyers with Pets: What You Should Prioritize

First-Time House Buyers with Pets: What You Should Prioritize

Buying your first home is exciting, but it can feel even more meaningful when you have pets to consider. First-time house buyers need to think not only about their own needs but also about creating a safe, happy space for their furry family members. Here’s what you...

VA Loan Requirements for Income-Restricted Homes

VA Loan Requirements for Income-Restricted Homes

Finding a good home can be exciting, especially when it fits your budget and needs. But if you’re eyeing an income-restricted property, it’s important to understand how VA loan requirements apply. Let’s take a closer look at what you need to know before moving...

How to Handle a Home Purchase Where the Seller Won’t Leave

How to Handle a Home Purchase Where the Seller Won’t Leave

Buying a home should be an exciting experience. But sometimes, unexpected challenges come up—like a seller who refuses to move out. If you find yourself in this tricky situation during your home purchase, don’t panic. There are ways to handle these problems and...