What Buyers Need to Know When Purchasing a Home with a VA Loan in Arlington

Are you considering purchasing Arlington real estate? Are you wondering what mortgage loan options are available to you as an active-duty service member or a veteran? Read on to find out what you need to know about VA loans – from qualifying for one to finding out if they are a good fit for you!

A VA loan is a mortgage loan that helps active-duty service members, veterans, and surviving spouses buy a home. While the US Department of Veterans Affairs backs a portion of this loan,  the funds are administered by a private bank or other lending institution. Whether you are looking to buy a first home, renovate a property, or refinance an existing loan, there are many VA home loans. For example, the VA Jumbo Loan is a home loan that lets buyers purchase properties exceeding a certain amount. However, if you wish to renovate the property, you can opt for a VA Renovation Loan, which will cover the home's price tag, including repair and renovation costs. VA mortgage loans greatly benefit those who qualify, streamlining the home-buying process with less stringent requirements.

Qualifying for a VA loan is generally more accessible than other types of home loans on the market today. You must have served in the armed forces to qualify for a VA loan. For example, if you have served at least 181 days during peacetime or 90 days during wartime, you might be eligible to apply. If you are the spouse of a service member who has passed away as a result of service, you might also qualify for a VA loan. If you think you might qualify, you should consult an Arlington real estate agent specializing in VA loans to determine if it would be an option.

If you think you are eligible, you must procure a Certificate of Eligibility (COE) to submit to the mortgage lender. A COE is a document showing that you serve or have served in the armed forces. As for surviving spouses, they must submit a marriage license and death certificate and fill out a form on the VA benefits website to determine eligibility.

If you are eligible, the mortgage lender will analyze your income and debt-to-income ratio to see if you would be a good candidate for a VA loan. Although VA loans don’t have credit score requirements, you might still have to check with your lender as they might have a minimum credit threshold.

If you qualify or think you might be eligible, continue reading to find what else you need to know if you plan on purchasing a home with a VA loan in Arlington.

There is no down payment requirement for a VA loan. This means that you do not have to set aside the mandatory 20% that is often required for conventional mortgage loans today. However, instead of a down payment, there are other fees that you might be expected to pay. For instance, many people with a VA loan must pay a funding fee. The funding fee can be anywhere from 1-3% of the total loan amount. You can pay the funding fee upfront, roll it toward your loan, or even ask the seller to pay it on your behalf.

If you intend to purchase Arlington real estate with a VA loan, then you need to know that a home appraisal is required. A home appraisal is mandatory to ensure that the home meets the property requirements for the loan. A home appraiser will assess the home's attributes, such as size, number of bedrooms, age, and style, to determine the condition and market value of the house. Getting your home appraised can ensure that you are not under or over paying on the home.

Even though home inspections are not required to attain a VA loan, you are highly recommended to get your home inspected. A home inspector will examine your home from top to bottom and note anything that could be a potential issue. They will examine everything from the foundation and roof to the HVAC and technology systems. Furthermore, getting a home inspection could serve as peace of mind that your home satisfies all codes. If the repairs or renovations are too extensive, you could consider backing out of the deal.

 

It is essential to remember that VA loans can only be used for a primary residence you plan on residing in. Generally, you cannot use it to purchase a vacation property. However, if you plan on living in the vacation property in the same year as purchasing it, it is possible to use your VA loan to purchase it. Another option is to convert your first property into a vacation home and buy a new primary residence.

 

There is no upper limit on the number of times you can use a VA loan. As long as you are eligible and qualify, you can keep taking out a VA loan to purchase a home. Every loan borrower has a specific dollar amount of entitlement that the VA backs if they default on the loan. You can theoretically keep taking out VA home loans as long as you have entitlement. For full details on whether you can use your entitlement to purchase another property, consult a VA-savvy real estate agent for guidance.

Buying Arlington homes for sale with a VA loan can be a complex endeavor. That’s why it can help to work with a real estate agent familiar with navigating the VA home loan process. From initial consulting to searching for the right home that meets the VA requirements, working with an experienced real estate team can be the preferable choice.

Interested in buying a new home in Arlington? Contact award-winning real estate agent Brian Siebel from Siebel Homes. Brian can help you find a dream home that aligns with all your must-haves by being extraordinarily responsive and advocative!