If you’re a veteran or active-duty service member looking to buy a house in VA, MD, WV and D.C., you may be eligible for a VA loan. VA loans are a great option for those who qualify, as they offer several benefits, including no down payment requirement and no private mortgage insurance (PMI). However, there are some things you need to know before using a VA loan to buy a house in VA, MD, WV and D.C.. In this blog post, we’ll cover seven important things you need to know about using a VA loan to buy a house in VA, MD, WV and D.C. and how Innovation Properties can help facilitate the process.
1. Eligibility Requirements for VA Loans in VA, MD, WV and D.C.
To be eligible for a VA loan, you must meet certain requirements. You must have served at least 90 consecutive days of active service during wartime, 181 consecutive days of active service during peacetime, or six years of service in the National Guard or Reserves. You must also have been discharged under conditions other than dishonorable. Spouses of service members who died in the line of duty or as a result of a service-related disability may also be eligible for a VA loan. Reach out to your preferred lender to learn more about the eligibility requirements.
2. Loan Limits When Using a VA Loan to Buy a House
VA loans have a maximum loan limit, which varies depending on the location of the property. In most areas, the maximum loan limit for a VA loan is around $500,000 for a single-family home. If you’re looking to buy a more expensive property, you may need to consider other financing options to help you reach your goals. That said, there are all sorts of incredible properties here in VA, MD, WV and D.C. that will qualify for purchase using a VA loan.
3. Funding Fees for VA Loans
One of the unique features of VA loans is the funding fee. The funding fee is a one-time fee that is paid at closing and helps to offset the cost of the VA loan program. The amount of the funding fee varies depending on the type of loan, the size of the down payment, and whether it’s your first or subsequent use of a VA loan. The funding fee can be financed as part of the loan, but it will increase your monthly payment. Be sure to factor in this cost when home shopping!
4. VA Loan Property Requirements
To be eligible for a VA loan, the property you’re buying must meet specific requirements. It must be your primary residence, and it must be in move-in condition. The property must also meet certain safety and health standards, and it must be appraised by a VA-approved appraiser. In most cases, meeting these requirements is simple for borrowers.
5. VA Appraisal on the Property
As mentioned above, the property you’re buying must be appraised by a VA-approved appraiser. The VA appraisal is different from a traditional appraisal in that it focuses on the condition of the property and whether it meets the VA’s minimum property requirements. The VA appraisal is also used to determine the value of the property, which is important for determining the loan amount.
6. Closing Costs When Buying a VA, MD, WV and D.C. Home
Like any other type of mortgage, there are closing costs associated with a VA loan. However, the VA has strict rules about what fees can be charged to the borrower. Some fees, such as the appraisal fee and credit report fee, must be paid by the borrower, while others, such as the underwriting fee and document preparation fee, can be paid by the seller. It’s important to work with a lender who is familiar with VA loans and can help you understand the closing costs associated with your loan.
7. Choosing a Lender in VA, MD, WV and D.C.
It’s important to choose a lender who is experienced in VA loans. Not all lenders offer VA loans, and those that do may not have the same level of expertise. Look for a lender who has a good reputation and can guide you through the process of getting a VA loan. You may also want to consider working with a lender who is familiar with the VA, MD, WV and D.C. real estate market, as they may have a better understanding of the local market conditions.
Using a VA loan to buy a house in VA, MD, WV and D.C. can be a great option for eligible veterans and active-duty service members. However, it’s important to understand the eligibility requirements, loan limits, funding fee, and property requirements. Be sure to choose the right lender, who can help make the process run smoothly. By working with a knowledgeable lender and understanding the process, you can take advantage of the benefits of a VA loan and achieve your dream of homeownership in VA, MD, WV and D.C..
Are you ready to buy a house? Innovation Properties works with local Veterans to help them achieve their real estate goals. Reach out to our team today to learn more about how we can help you! 703-782-4422