If you’re active or discharged military who’s ready to buy a home, a Veterans Benefits Administration (VA) home loan allows you to buy a home with no down-payment, no minimum credit score, and a better interest rate than you’d otherwise qualify for.
Because the VA is guaranteeing the loan for the mortgage lender, you’ll need a Certificate of Eligibility, along with social security numbers, pay stubs, and debt obligations to give the lender.
Loan approval will require a VA qualified appraisal. If the appraiser notes a health or safety issue, and the seller agrees to the scope of work, a follow-up compliance inspection is scheduled to insure the work has been completed.
You’ll have to order your own property inspection to ascertain the working order of the home’s operating systems, a different focus from the appraisal which concentrates on value.
Certain costs you can plan on ahead of time are the money needed for the inspection, funds for earnest money deposit, and customary closing costs such as insurance, appraisal, etc but these can be bargained to be paid by the sellers in most states. Consult your real estate agent for the best advice on this matter.
Your VA home loan benefit is ongoing; you can use it again to refinance or to buy your next home as long as your benefits and elegibility are sufficient.