When you are ready to buy a home, your mortgage lender will offer you a variety of different mortgage loan option, from conventional loans to government-insured loans. Your loan options will be unique to your financial situation and will depend on a variety of factors, like your credit score, debt-to-income ratio, funds for a down payment, and savings.
Conventional loans often have stricter guidelines and higher down payment requirements than government-insured loans, making government-insured loans a popular option for many borrowers. Basically, a government-insured loan is loan backed by the government, who guarantees repayment to the bank should you default on your mortgage payment. These loans can be backed by the Federal Housing Authority, the U.S. Department of Agriculture, or the U.S. Department of Veterans Affairs.
VA Loan Basics
VA Loans specifically are for eligible American veterans, active duty military, Reservists, members of the National Guard, and the surviving spouses of veterans. As we mentioned before, VA loans are backed by the Department of Veterans Affairs. For those who qualify, these loans require no down payment, no private mortgage insurance, and offer flexibility with credit scores.
Since VA Loans are backed by the government, your lender’s risk is reduced, which allows them to be more flexible with their loan requirements, especially credit score minimums and ranges.
Your VA Eligibility Never Expires
If you are experienced home buyer and you have already bought a home using your VA eligibility when you are ready to move again you get another VA loan. In fact, you can reuse a VA loan as many times as you want, as long as the previous loan is paid off.
