What Is a VA Loan?

Are you a veteran or current service member? If so, you may qualify for a VA loan. This type of mortgage option is granted through the U.S. Department of Veterans Affairs, and is designed to support veterans who want to buy or build a home — as well as those who are considering improving or refinancing their current property. Surviving spouses are also eligible for VA loans.

Having a VA loan doesn’t mean you can forego the credit and income requirements for the mortgage you want, so it’s still important to practice healthy financial habits and know your budget. However, a VA loan does often provide access to better terms than you’d find with a traditional bank or credit union — making homeownership a more attainable reality for veterans and their loved ones.

Private lenders are able to provide more attractive terms on VA-backed home loans, because the funds are guaranteed by the government. In fact, according to the VA, nearly 90% of these loans do not require a down payment! 

There are several different types of VA loans, including

• Purchase loans
• Native American Direct Loan (NADL) program
• Interest Rate Reduction Refinance Loan (IRRRL)
• Cash-out refinance loan

Is a VA Loan Right For Me?

It’s no wonder that a VA loan is a popular option when it comes time to buy, build, improve, or refinance a property. However, this type of government-backed loan isn’t necessarily the most feasible option in every situation. 

The Benefits

• Access to home loans without a down payment, in many cases
• Better terms than traditional loans
• Multiple loan programs to meet your unique needs

The Drawbacks

• Surviving children are not eligible for VA loans
• You still need to meet your lender’s financial parameters — not just the VA’s
• Your eligibility is determined by several factors, including how long (and in what decade) you served; i.e., not every veteran is automatically eligible

Wondering how to secure a VA loan in Florida? The team at Arco Financial is here to help. Contact us today to learn more, and start taking your next steps.