All You Need to Know about Military Loans
For those who have served in the armed forces, getting a VA loan can be a great way to purchase your new home, or even build your own! The VA actually does not give out loans, but they insure the loans and can negotiate on your behalf, making it easier to get a mortgage. They also cover the mortgage insurance! If you qualify, this is something to look into.
How to quality for a military loan
In order to be eligible for a VA loan, you would have needed to complete 181 days of active duty. Those in the reserves or National Guard will need to wait 6 years before being eligible. If you have served 90 days of active duty during a war period, you are also eligible for a VA loan.
What can a military loan be used for
Most VA loans are used for the purchase of homes. You can also use a VA loan to build your own home, renovate a home, or purchasing land. Condos, apartments, and manufactured homes are also included.
What are the benefits of a military loan
VA loans can be received without any down payment! For those who want to use their loans to purchase a home, this benefit will make it easier to get a place of their own. When you get a military loan, mortgage insurance is not required. This saves you even more money.
The fees are also low. Your interest rate can be at 1.25% if you do include a down payment! Without a downpayment, you still get great benefits and would only pay 2.15%.
Another great benefit of these loans is that the VA will negotiate on your behalf if you are unable to make a payment. Having this added protection can help you keep your home and reduce stress.