If you are eligible, getting a VA loan can provide you with some definite benefits as a borrower. Here are a few of the most frequently asked questions associated with VA loans.
What Is the Maximum Amount That Can Be Borrowed?
If you are considering purchasing a house with a VA loan, you are going to need to be aware of the maximum loan amounts. With this program, the maximum amount of the loan is going to depend on what county you live in. Each county has its own maximum VA loan limits. In most counties, the maximum amount of money that you can borrow is $417,000. However, in some areas where real estate is more expensive, the loan amount limits are raised to accommodate the values of the area.
Does the VA Have an Inventory of Foreclosed Homes?
The VA actually does have an inventory of foreclosed homes that were previously purchased with a VA mortgage. If the individual is unable to make their payments, the VA has to pay the lender for the property and they are left with the house. The VA works in conjunction with Ocwen Federal Bank FSB in order to maintain this database. This bank is located in West Palm Beach, Florida. All of the properties are marketed through local real estate agents, so you should be able to access it through your local MLS database as well. This can be a great way to get a fantastic deal on real estate because the properties are traditionally priced lower than their value.
What Are Some of the Advantages of VA Loans?
If you qualify for a VA mortgage loan, you are going to be able to take advantage of several benefits. First, you will be able to purchase a property without investing with a down payment. This opens the market up for many people. Another advantage of this type of loan is that you will not have to pay private mortgage insurance. This can save you money every single month on your mortgage payment. Another advantage of getting a VA loan is that the interest rates for this type of loan is usually a very competitive market rate. This decreases your monthly payment and the amount of money that you pay over the life of your loan.
Can You Use This Type of Loan More Than Once?
With the VA loan program, you will be able to use your eligibility more than one time. However, in most cases, you are only going to be able to have one VA loan at a time. You will have to pay off your initial loan first before you can use your award again.