Whether you're getting your first home, or buying for the third or fourth time, understanding loans, mortgages or the financial elements of purchasing a home can be complicated. FHA loans and VA loans are typically easier to obtain for first-time buyers and have more lenient and versatile options.
Even if you are living abroad and cannot see your family, you can ensure that they are living comfortably and safely by applying for a VA loan. While those not currently in the service may be worrying about how they will afford a house and whether or not they will be able to be approved for a loan or mortgage, you should not have to worry about that.
FHA loans are loans that are backed or insured by the Federal Housing Agency. The loans themselves are not given by the FHA, they are simply loans provided through approved lenders which the FHA promises to cover if the loan defaults.
The benefits you get from a VA loan are far and away better than anything else you can find. These loans are applicable on buying homes or condominiums in a VA-approved projects or building a home. Not only that, but if you are simultaneously purchasing and improving a home, or improving it by installing energy-related features or making energy-efficient improvements, the loans are for you. Finally, the loans are also available to people who are buying a manufactured home and/or lot.
On the down side, FHA loans have higher mortgage insurance, and there are loan limits on the amount that can be applied for. Homes with an FHA loan must be owner-occupied, and they can sometimes take longer to process than standard loans, making you a less appealing candidate if multiple offers for the home are on the table.
There is a small fee involved in the VA loan that is a fraction of the amount that you would be paying if you were getting any other kind of loan. If you are receiving disability compensation the fee is waived entirely.
While the disadvantages of a VA home loan are minimal, there are a few that exist. VA loans do have a cap on the amount of money that may be borrowed, making it difficult to qualify to purchase more expensive homes. Additionally, any fees associated with the purchase like closing costs, the cost of necessary repairs (as determined by a VA approved inspector), and funding fees (though these may be rolled into the bulk of the loan and are not due up front.)
If worse comes to worse and you cannot make a payment and are facing foreclosure, the Veterans Affairs can step in and negotiate with lenders to see to it that you are given a chance to pay back on a different payment plan. Veterans that are struggling financially will be given the chance they deserve for serving our nation.
Even if you are living abroad and cannot see your family, you can ensure that they are living comfortably and safely by applying for a VA loan. While those not currently in the service may be worrying about how they will afford a house and whether or not they will be able to be approved for a loan or mortgage, you should not have to worry about that.
FHA loans are loans that are backed or insured by the Federal Housing Agency. The loans themselves are not given by the FHA, they are simply loans provided through approved lenders which the FHA promises to cover if the loan defaults.
The benefits you get from a VA loan are far and away better than anything else you can find. These loans are applicable on buying homes or condominiums in a VA-approved projects or building a home. Not only that, but if you are simultaneously purchasing and improving a home, or improving it by installing energy-related features or making energy-efficient improvements, the loans are for you. Finally, the loans are also available to people who are buying a manufactured home and/or lot.
On the down side, FHA loans have higher mortgage insurance, and there are loan limits on the amount that can be applied for. Homes with an FHA loan must be owner-occupied, and they can sometimes take longer to process than standard loans, making you a less appealing candidate if multiple offers for the home are on the table.
There is a small fee involved in the VA loan that is a fraction of the amount that you would be paying if you were getting any other kind of loan. If you are receiving disability compensation the fee is waived entirely.
While the disadvantages of a VA home loan are minimal, there are a few that exist. VA loans do have a cap on the amount of money that may be borrowed, making it difficult to qualify to purchase more expensive homes. Additionally, any fees associated with the purchase like closing costs, the cost of necessary repairs (as determined by a VA approved inspector), and funding fees (though these may be rolled into the bulk of the loan and are not due up front.)
If worse comes to worse and you cannot make a payment and are facing foreclosure, the Veterans Affairs can step in and negotiate with lenders to see to it that you are given a chance to pay back on a different payment plan. Veterans that are struggling financially will be given the chance they deserve for serving our nation.
About the Author:
Government Loan Pro is a licensed VA and FHA mortgage broker and we can provide a wide variety of VA Purchase options for you and your family. We make it easy to find refinancing options for your VA home loans, amazing rates on purchasing loans, and we'll connect you to the mortgage lender who can answer your questions and help you make the decisions that fit your financial needs.
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