Home ownership is something that many people in the United States dream of doing. It is a big part of the American Dream and ever since the end of the Second World War, many individuals and families have taken advantage of different programs that have been set up so that people all across the country could become homeowners.
FHA loans, as well as the conventional mortgage, have long been methods by which people have purchased homes. Some have purchased many, including a vacation home or an investment property. Others, only their one, and only family home. Each home buying experience is different, and though the process is clear for some, 59% of homeowners wish they knew the terms of their mortgage better.
For 32% of the people looking to buy a new home, this will be their first home. First time home buyers have a number of special opportunities to buy a new home, with mortgages suited just for them. In March or 2016, the average sale price for a home in the United States was $186,000. Obviously, some were less and some sold for a great deal more.
For veterans of our country, VA home loans were created so that every veteran who wants one can be able to purchase a home of their own. VA home loans are loans that are guaranteed by the United States Department of Veterans Affairs, also known as the VA. Qualified lenders can issue VA home loans and they are designed to offer long-term financing to veterans or their surviving spouses if they remain unmarried.
Here are three things that you probably didn’t know about VA home loans and why they are important.
1.) They are reusable
As long as you pay off your loan each time, you can use your VA home loan time and again. Even if you have lost your loan to a foreclosure, you still may be able to qualify for another one.
2.) They are only for primary residences
You might love the idea of a summer home in Cape May or an investment property on the other side of town. Those are both great ideas but you will not be able to use VA homes loans for them. You can only use a VA loan for the home you live in.
3.) There is no prepayment penalty
If you suddenly hit the lottery or decide you would like to double up on your monthly payments, you are more than welcome to do so. Paying your loan off early can shave thousands of dollar off your balance.