Can you use your VA home loan for more than just a home in Orlando?
If you are interested in buying or constructing a residential property containing more than one family unit and you are the only veteran buying, you cannot exceed four seperate units. If more than one veteran is buying into this housing property, more units can be purchased. For example, one veteran could buy four units, two veterans could buy six units, and three veterans could buy seven units, and so on. In addition to this, if you are planning on depending on rental income from the property in order to qualify for the loan, then you will have to show that you have the background or/and the qualifications to be successful as a landlord and that you the ability to make the loan payments for at least 6 months without help from any incoming rental income. Are you interested in using your loan to purchase a cooperatively owned apartment? In most cases, this is not acceptable. However, the only way that this situation would be acceptable is if almost all of the members of the cooperatively owned apartment are veterans who are using their entitlement. In addition to that, all of these veterans will have to present considerable difficulties in obtaining VA financing for these purchases. These two requirements can make it terribly hard to complete this purchase. If you are interested in buying a property that is in a foreign country or even another state, there are things that you must know. First, your purchased property must be located in the United States, its territories, or possessions. The possessions include:
• Puerto Rico
• Virgin Islands
• American Samoa
• Northern Mariana Islands
If you are thinking about purchasing a home in another state, you will just need to find a lender willing to complete this purchase. This is due to the fact that many banks limit their lending operations to certain areas. If you want to learn more about what you can do with your VA home loan, contact NHL Lending in Orlando today!
How is a VA home loan different than any other home loan?
You may already know that VA loans do not require any money down. Other home loans can require between 3.5 percent and 20 percent down. In addition to not needing a down payment, VA home loans do not require any private mortgage insurance due to the fact that they are insured by the government. On the other hand, conventional mortgages are not backed by the government and therefore they require private mortgage insurance, which can be due upfront or rolled into your mortgage. VA home loans tend to have more competitive interest rates than traditional mortgages do. This is because conventional mortgages are more of a risk to lenders since they will not be repaid if you default. One last difference between a VA home loan and other loans is that it is easier to qualify for a VA loan since it is insured by the government. Due to this insurance, you will be able to qualify for a VA loan with a lower credit score than you would have to have for a traditional mortgage. However, you will want to keep in mind that just because the government insures these loans, they do not pay these loans to the borrower. Private lenders that are approved to finance VA loans will pay these loans to you. The government just insures the loans in order to protect the creditors in the case of non-payment and default so that they will approve riskier lenders for loans. Currently, the VA loan limit is $417,000 in most regions but this amount may vary from county to county. If you find a home that cost more than the loan limit will approve then you may have to pay a down payment in order to get approved for your home loan. One last thing that you will want to keep in mind when it comes to your home loan is that there are certain funding fees that will be associated with your VA loan. The fees that are collected from you will be paid directly to the VA. By collecting this fee from all borrowers, the VA home loan program can continue to run and continue to benefit other military members. This fee will vary based on your circumstances, if it is your first time receiving a VA home loan, and if you have a service connected disability (then this fee will not apply to you). You may even have the option of having the seller pay these fees for you which would mean that you could literally move into a home without having to have money due at the time of closing. You can learn more about VA home loans, rates, and more by contacting NHL Lending in Orlando.