b>What Are VA Homes? which means that you will be
responsible for any repairs or
VA homes are owned by the upgrades to the home.
VA, or Veteran's Administration.
The previous mortgage on these The Pros and Cons of VA
homes were insured by the VA, so Financing
when the mortgage loan is
defaulted on, the VA gets the There are two types of VA
title to the property. They can financing. To get regular VA
then re-sell it to another buyer. financing, a person must
The one thing that many people demonstrate their eligibility.
don't know about VA properties is Eligibility for VA financing
that anyone can buy them. You do means that you have served in the
not have to be military personnel military at some point or are the
or a veteran to purchase one of surviving spouse of a military
these houses as your own. person.
VA houses are offered for sale Or, if you intend to buy a VA
through an auction. A potential home and are a non-veteran, you
buyer must fill out the necessary can apply for VA Vendee
forms and their real estate agent financing, which has terms
submits the forms to the VA similar to VA loans.
before the auction period ends.
If the house does not sell during VA financing offers excellent
the auction, then the house is terms for those that are
simply offered for price that is eligible. However, there are some
usually close to the market value pros and cons to VA financing.
for the home, but is generally
somewhat less than the market Some of the great things about VA
value. VA homes are sold "as is," financing include the fact that
you generally only have to put a VA loan. However, your credit
down a $500 earnest money does not have to be perfect,
deposit. With other types of real either. Buyers must also be able
estate, your earnest money to show the VA that they can
deposit is usually a percentage afford to make their mortgage
of the cost of the home, so $500 payments and still have the funds
can be a real bargain. Another for necessary living costs.
advantage to VA financing is Basically, you need to have an
there is usually a low or even no acceptable debt to income ratio.
down payment required.
Other considerations include the
Other advantages to VA loans are fact that you must intend to live
that the closing costs are in the home. You can't buy it and
usually lower, and there are no then let someone else live in it.
mortgage insurance premiums to be You must also maintain the home
paid. The interest rate is and keep it in good shape.
negotiable, and it is always
comparable to the federal Talk To Your Real Estate
interest rate. Agent
Some of the disadvantages to VA It is helpful to find a real
loans are that you must pay a VA estate agent that has experience
loan funding fee, which is with VA loans if you are a
currently 2.25% of the value of veteran or with VA Vendee loans
the home. However, you can choose if you are not a veteran but want
to finance the cost of this fee to buy a VA owned house and want
into your mortgage loan. A buyer to take advantage of VA
who wants to get VA financing financing. A good realtor will be
must have acceptable credit. You able to help you fill out all the
cannot have lousy credit and get necessary paperwork and answer
your questions regarding VA not a stressful experience.
financing so that the process is
About the Author:
Christena Palmer manages her Downtown Austin Condos Guide, her partner’s Austin Real Estate company’s website, & her Austin Condos
Read more articles by:
Christena Palmer
Article Source: www.iSnare.com 
