The Complete Guide to VA Loans

When searching for a home loan, it’s essential to find one that offers the best financial incentives. There are many loan programs available, some of which aim to help one group or another. One type of loan program is a VA loan. If you’re an active duty military member, a veteran, or the spouse of someone currently serving, a VA loan is often the best way to secure an affordable loan for your next home purchase. Below, we’ll outline everything you need to know about these loans to help you get started.

What Is a VA Loan?

A VA loan is a type of loan that’s provided by private lenders like banks and mortgage companies. These loans are available to active duty military members, veterans, national guard members, and spouses when applying for a home loan. With a VA loan, the VA guarantees a portion of the loan, allowing them to offer lower rates to borrowers.

What are the Benefits of a VA Loan?

There are a few benefits to borrowers getting a VA loan. The first benefit is VA loan interest rates, which are the lower interest rates available with VA loans. This lowers the amount that the borrower needs to pay back over the course of the loan. In addition to better VA loan rates, the VA doesn’t require a down payment with the loan. This can make affording a new home loan much easier, as you don’t need cash upfront to secure the loan.

Some other benefits of a VA loan include limited closing costs and no need for Private Mortgage Insurance. The VA home loan is also a lifetime benefit available to veterans, meaning they can use this type of loan multiple times, unlike some other types of loans. Finally, if you’re looking to build a new home, you can use a VA construction loan to finance the costs, rather than only using this type of loan for existing homes.

Am I Eligible for a VA Loan?

There are a few basic VA loan requirements that determine if an applicant is eligible. The most basic requirement is a minimum number of service days. For active members, you need to have served for at least 90 continuous days. For veterans, the amount of days required depends on when you served. When filing for a VA loan, you will need a Certificate of Eligibility, which details whether or not you are eligible for a VA loan. Your VA loan provider can help you obtain the COE.

How Can I Find a VA Loan in Minnesota?

The easiest way to secure a VA loan in Minnesota is by working with a lending provider. Supreme Lending is a mortgage provider in the Willmar, Minnesota, area that focuses on helping borrowers find affordable and secure mortgages. One of our areas of expertise is VA loans, where we can help active duty service members, veterans, and their families through the process of securing a VA loan. We’re here to answer any questions you may have about this type of loan or about completing the application process. Please contact us today to get started.