7 Must-Know Facts About VA Loans in Texas The VA loan program is one of the most powerful lending program in the U.S. It has helped

millions of veterans, military families, and service members achieve their dream of owning their

own home. Although numerous veterans go for this program, however, not all veterans are

familiar with the program and its benefits. If you too are planning to go for a VA loan, read this

blog post, to learn some of the facts about VA loans and its benefits.

1. Can be Reused

VA loans are reusable, which implies that the eligible VA loan borrowers can reuse the VA

entitlement as long as they pay off their loan each time.

2. Valid for Primary Residence

Most people have this misconception that they can use VA loan to buy a property elsewhere.

Barring a few exceptions, VA loans are applicable only for primary residences.

3. Applicable on Selective Properties

VA loans do not cover all types of properties, they are applicable selective types of homes, such

as condos, single-family homes, multi-u it p ope ties, odula housi g, a d othe such eady-

to-move-i p ope ties.

4. VA does not Lend VA Loans

This is yet another common belief that the U.S. Department of Veterans Affairs (VA) issues VA

loans. Contrary to the common belief, VA does not issue the loan. It, however, provides

guarantee on each qualified loan.

5. No Prepayment Penalty

In VA loans, you can pay extra and in advance with no prepayment penalty. These additional

payments can be made over the life of your loan or sooner to save your loan interest.

6. Does not Include Mortgage Insurance

Va loans do not involve monthly mortgage insurance payments, which in most other loans is

e ui ed whe you e ot payi g at least 20 pe ce t of the dow pay e t o a ew o tgage.

7. Includes Funding Fee

Although there are no monthly mortgage insurance payments in VA loans, however, it includes

a mandatory funding fee. This payment is just 2 percent of the loan amount and is required on

both purchase and refinance VA loans.

Last Few Words

VA loans provide a great opportunity and benefit to millions of people who have served their

country to be homeowners. As compared to conventional loans, VA loans undoubtedly offer

great benefits without any unnecessary complications. There are, however, particular

guidelines, terms, and conditions that the eligible borrowers must agree and obey to avoid any

complications in future.