A veteran home loan helps service men and women purchase a home. These loans are available to military personnel only. Each service member has access to these mortgages based on their service record. A lender helps them get approved for these mortgage loans. However, there are a few things they should know before they apply for the mortgage.
Can Military Personnel Buy Any Home?
No, the service member cannot buy any home on the market. The property must meet specific eligibility requirements. Among the most common restriction is that the home must meet building code requirements. They cannot buy a home that needs extensive repairs. The chosen property must pass the home inspection without issue.
Should They Get An Pre-Approval?
Yes, a pre-approval helps the service member determine the highest loan value achievable. This helps their real estate agent find a property that is within their budget. The pre-approval prevents delays and shows the agent that the service member is ready to buy a home.
Does the Military Discharge Affect Eligibility?
Yes, service members who were discharged dishonorably don't qualify for a VA loan. They lose these benefits based on the reason for their discharge. It is involved criminal activities, they could lose financial assistance through any government program. Service members who were discharged honorably won't face these limitations.
What Insurance Is Needed for Their Chosen Property?
The service member must purchase homeowner's insurance before the property closing. If the property is situated in a flood zone they are required to purchase this insurance as well. They must provide evidence of these policies during the closing. However, they aren't limited to a specific policy. They may choose their policies based on their requirements. This could include higher coverage levels and true replacement value.
All service members must fulfill VA home loan eligibility before they obtain an approval. This includes achieving at least a 620 credit score. The property must meet the guidelines for this loan program. To gauge their opportunities they could acquire a pre-approval. Service members who are ready to start the application process should contact a lender now for more info.