If you’re an honorably discharged veteran of the U.S. Armed Forces, you could—and most likely do—qualify for a loan backed by the Veterans Administration.
Many vets who are buying a house for sale in Charlotte, NC aren’t aware of all the benefits a VA loan has to offer, though, so let’s dive right in.
VA Loan Basics
The loan doesn’t actually come from the Veterans Administration, so calling it a “VA loan” is only partially correct. The loan comes from a private lender of your choice, and the VA simply guarantees a portion of it. That means the VA tells the lender that if you can’t make your payments, the lender can come to the VA to get the money.
Because the VA backs these loans, lenders are able to give you, the veteran or service member, more favorable terms.
You can use a VA loan to buy a single-family home, a condo, or a manufactured home, or you can use it to build a home.
VA Loan Benefits
The benefits that come attached to a VA loan include:
- Zero down, as long as the home’s sales price isn’t higher than its appraised value
- No private mortgage insurance premiums (PMI)
- Limits on how much you can be charged for closing costs
- Sellers can pay your closing costs
- The lender can’t charge you a penalty for paying off the loan early
- The VA may be able to help you if you run into trouble making your mortgage payments
Credit Score Requirements for VA Loans
The VA doesn’t require a minimum credit score to back a loan, but most lenders do. However, even if your credit is less-than-stellar, the lender must look at your entire loan profile when they make a lending decision; it can’t be based on your credit score alone. You can read the VA Lenders Handbook for more information.
Are You Buying a Home in Charlotte?
If you’re thinking about buying a home in Charlotte or the surrounding communities, we’d love to help you.
Call us at 704-608-2794 or get in touch with a Charlotte Realtor online today. In the meantime, take a few minutes to browse:
- All Charlotte, NC real estate listings
- Luxury homes for sale in Charlotte
- New construction for sale in Charlotte
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