Veterans Day is one of the most important ways we honor the men and women who have defended our country. Taking a day to acknowledge their sacrifices and thank them for their service is a duty we owe to every vet.
Another way we thank veterans is through VA home loans. These loans are provided by private institutions. The VA guarantees a portion of the loan so lenders can offer veterans advantageous financial terms such as lower interest rates, low down payments, and no requirement to purchase private mortgage insurance (PMI).
Most military personnel are eligible for the VA loan program. This includes veterans, active-duty personnel, reservists, National Guard members, and some surviving spouses.
Getting a veteran home loan is in many ways like getting a conventional loan. One difference is that veterans need to document that they qualify. The U.S. Department of Veterans Affairs website explains how to get a Certificate of Eligibility for a VA home loan. Then, vets will want to think about the kind of home they wish to purchase. You can buy many different kinds of homes with a VA loan, so here’s a look at some of them.
Houses, Townhouses, and Condominiums
Many people think of buying a single-family home with a VA loan, but you can also purchase townhouses and condos. Many condominium and townhome developments are already approved by the VA. When they aren’t, there is a process to get homes approved that meet the guidelines.
You can also buy a multi-unit property with a veteran home loan. The VA has a few rules you need to follow with these properties. The first is that you must live full time in one of the units. The second is that the property can contain no more than four units total.
Mobile, Manufactured, and Modular Houses
It is possible to get a VA loan for a mobile or manufactured home, so long as it’s permanently fixed to its foundation. Veterans can use the program to buy the land on which these homes sit. You can also purchase modular homes with a VA loan.
Financing for the Construction of a New Home
Finally, you can use a veteran home loan to finance the building of a new house. Loans for new construction are easier to get approved with a down payment. (One of the advantages of VA loans is that qualified veterans can get a mortgage for an existing home with a $0 down payment.) The home plan and builder must be approved by the VA, and there are inspection requirements to meet.
While veterans are shopping around for the right home, they should also shop around for the right loan. Our FREE loan options guide talks about your loan choices, compares the requirements and benefits of each type, and makes it easy to understand the terms you’ll run into along the way. Download a copy now.