What is a VA Loan?

What is a VA Loan

If you’re an honorably discharged member of the U.S. Armed Forces, a reservist or Guardsman, an active duty service member, or a qualifying dependent, you could qualify for a VA loan.

But what is a VA loan, and what benefits does it have to offer?

What is a VA Loan?

A VA loan isn’t actually a loan that comes from the Veterans Administration – but it is backed (guaranteed) by the Veterans Administration. That means the VA guarantees all or part of the loan from a regular lender. If you don’t make your payments, the VA will step in and make things right with the lender. The lender isn’t assuming a huge risk by lending to you when you have a VA loan.

Related: 3 things most people don’t know about VA loans

Benefits of VA Loans

VA loans have several benefits, including:

  • No down payment necessary (as long as the home’s sales price isn’t higher than its appraised value)
  • No private mortgage insurance, or PMI, requirement
  • Limits on the amount you can be charged for closing costs
  • No early payoff penalty
  • In some cases, the VA can help you make payments if you run into trouble

You don’t have to be a first-time homebuyer to use a VA loan. However, if you have used a VA loan in the past, the first loan must be satisfied (paid off) before you can take out another one in your name. You can reuse the benefit as many times as you’d like – as long as you have paid off the last loan before taking out a new one.

Note: You don’t have to be the one to pay off the loan. If you sell a home you purchased with a VA loan, the new buyer is the one who pays it off. Once someone buys your home, their lender pays your lender – that satisfies your VA loan repayment.

Are You Buying a Home Along 30A?

If you’re thinking about buying a home for sale on 30A, we can help you. Call us at 850-213-3048 to tell us what you’re looking for – we can help you find it.

In the meantime, check out all our listings or get specific with these links: