When you buy a house, you need to figure out how you’re going to finance the purchase. This means finding the right type of loan to help you get into the home of your dreams. While most buyers will rely on conventional mortgages to finance their home, some may find that buying with a VA loan is the better option. However, you need to make sure you’re a good candidate for this unique type of loan. Here’s what you need to know.
You Must Meet the VA’s Qualifications
The VA has some fairly strict qualifications that any borrower looking to buy with a VA loan must satisfy before they can even apply for financing. You must be a military veteran that was on active duty for at least 180 consecutive days during times of peace and 90 consecutive days during wartime. If you served for six years in the Reserves or National Guard, you may also be eligible. Some surviving spouses of veterans may also be able to use this loan to buy a house. If you’re not sure if you’re eligible, talk to your lender.
You’re Looking to Buy a Move-In-Ready House
If you’re planning on buying a fixer upper or a home that needs tons of work before you can live in it, you’ll want to look into a different type of loan. VA loans have strict habitability requirements that every home must meet. If the house needs work, doesn’t have safe electrical systems, or isn’t ready to be lived in full-time without significant renovations, you can’t use the loan.
You’re Using the House as a Primary Address
If you’re looking to buy a house to fix and flip or as an investment property, buying with a VA loan isn’t an option. You must plan on using the home as your primary residence for at least a year after you close on the house. You must also be able to move in within 60 days of closing. Keep in mind that there are always exceptions to the rule. Your lender will be able to help you understand your options.
Buying With a VA Loan Is a Great Option
If you’re looking to buy a house, buying with a VA loan is a smart choice as long as you qualify for the loan itself. If you’re not sure, don’t panic. Reach out to our team to discuss your qualifications and let us help you find the right loan for your needs.