8 Things To Know About VA Loans
VA loans are government loans that are a benefit of having served in the military. They are available to active and retired members of the military and their surviving, unmarried spouses. If you qualify for a VA loan, it will be the cheapest mortgage option for you.
Here are some things that every home buyer needs to know about VA loans.
Down Payments, Mortgage Insurance, and Closing Costs
- A VA loan requires no down payment. There are limits on the size of a VA loan, and those limits depend on the county in which the property is located. The limits are pretty high, though. In the Metro-Denver counties, the VA loan limit is $561,200. In Boulder County, it is $626,750. You can buy a house for more than the county limit, but you will have to pay a down payment if you exceed the limit.
- There is no mortgage insurance for a VA loan.
- If you don’t have enough money for the closing costs, the seller is allowed to pay for them for you. Also, a relative is allowed to give you the money for the down payment as a gift.
Income Limits and Eligibility for VA Loans?
- There is no income limit for VA loans. Everyone, no matter how high their income, is eligible.
- VA loans are not just for first-time home buyers.
- You can have more than one VA loan at the same time.
Interest Rates and Waiting Periods
- Interest rates do not depend on your credit score, like they do with conventional loans. Everyone gets a low rate.
- The waiting periods after bankruptcies, foreclosures, and short sales are much shorter for VA loans than they are for conventional loans. VA loans only require a 2 year waiting period after a bankruptcy, and a 2 year waiting period after a foreclosure or a short sale.