What is a VA loan? This guaranteed loan has been in existence since 1944 and has provided millions of veterans with the ability to realize their home ownership dreams without having to come up with a down payment before they could buy their first home. One benefit of VA loans is that they are Federally Guaranteed. This means that if the homeowner goes into default or fails to repay the loan, the Federal Government will step in and repay the loan so the lender doesn’t lose money. However, this doesn’t prevent a default from showing on the borrower’s credit report.
Can VA Loans Be Used For Home Improvements?
This question comes up frequently among veterans who already own their homes and the answer is No. The Federal Government does not offer veterans any type of home improvement loan, but the veteran can use a VA loan to refinance a first lien on their home.
Divorced Couples And VA Loans
Divorce is a fact of life in this day and age, in many marriages where there is one spouse who is a veteran, that spouse will have to agree to allow the other spouse to continue having access to their VA loan benefit after they divorce since the VA loan is by definition, for the veteran spouse only.
VA Loan Terms And Conditions
Contrary to public belief, not every veteran will qualify for a VA loan. The Federal Government has specific rules about which veterans will qualify for a VA loan. Here is a short rundown of the basic terms and conditions:
- The veteran must be deemed a good credit risk.
- There must be a realistic income coming in which shows that the veteran will be able to pay off their VA loan.
To learn more about VA loans or to view the latest Orange County homes for sale, contact the experienced team of top Orange County realtors at Fred Sed & Associates at (949) 272-0125.