If you are an active military person, a veteran or a surviving spouse, and you are eligible, then you may be able to get a VA loan. It is a loan with an okay interest rate, nicer entry conditions, and often no down payment. Again, you have to be eligible and there is a slew of restrictions, but the fact is they are pretty good for first-time buyers and disabled veterans.
Is It Good For First-Time Buyers?
If you are looking for a house that is pretty humble and cheap, and if you are a first-time buyer, then the terms and conditions of a VA loan are a lot more favorable than what you get with private banks and lenders.
The interest rates are not harsh, but you can do better with different lenders and different schemes. However, since you don’t have to have a brilliant credit rating to land a VA loan, many people consider it perfect for first-time buyers.
You do not have to pay a down payment up to a certain amount of money. You can get VA loans of mostly any size, with the understanding you are buying your primary residence (and not buying a mansion or tower block). However, up to a certain point, there is no down payment. When you reach the threshold, there is an average down payment of 25%.
Is It Your First Real Estate Deal?
If you are looking into using VA loan services, then you need to find a real estate agent who understands the VA loan procedure. Over time, you will need the use of a payment calculator, like the one you may find here. You should try to understand as much as you can about the VA loans process, and you need to find a building for sale that is eligible for VA loans.
There are a series of restrictions around what you can and cannot buy. For example, if you want to buy a fairly small house in a city, town or neighborhood, then you will probably have no problems. There may be some restrictions due to the sellers, who perhaps want a quick cash sale, but otherwise, you will probably be fine. However, if you want to buy a condominium, a timeshare, or even a converted shop to a house that still has a shop front, then you may have a harder time getting your VA loan.
What About Those Pesky Details?
The VA loans offer a few benefits to people who are in the military, and it is tricky to qualify and get to grips with all the restrictions and so forth. However, do not be fooled into thinking this is your best option.
If you have a good credit rating, a good debt-to-income balance, you don’t have too much debt already, and you have a nice deposit, then traditional home-buying methods may suit you better than a VA loan. However, if you have a shaky credit rating, or perhaps too much debt, or perhaps your military job doesn’t pay you very much, then a VA loan may make it easier to strike your first real estate deal.
How Long Does it Take?
Getting to grips with the information, restrictions and eligibility details, is going to take you (personally) a while. However, the process of applying for loans is pretty quick. As mentioned earlier, VA loans are put up by private companies, many of which organize regular house loans and mortgages. They have streamlined the process to make it quick and easy. You may need to show a certificate to prove you are a full-time or previous member of the military, but you can often get quotes long before all the paperwork is finalized.