This week’s Q&A column is written by Rebecca McCullough of McEnearney Associates Realtors®, the leading real estate firm in Alexandria. To learn more about this article and relevant Alexandria market news, contact Rebecca at 571-384-0941 or email [email protected]. You may also submit your questions to McEnearney Associates via email for response in future columns.
Question: What are VA Loans?
Answer: Happy Memorial Day weekend! That sentiment has always struck me oddly. This is the weekend we bow our heads and remember those who gave their lives for service to their country. A solemn and proud weekend where we appreciate those we lost for their bravery that allows us to live as we do. For that I am truly grateful for their sacrifice.
So, with veterans on my mind, I thought it would be an appropriate time to dive into the world of VA Loans. The government backed mortgages that only active military personnel, veterans, and their family members are entitled to.
There are special protective features of VA Loans that are meant to benefit people who have and currently provide military service to our country. They are:
- All VA loans are backed by The Department of Veterans Affairs (VA).
- No downpayment is required.
- Typically, they can get a better rate than other mortgage programs.
- Less stringent credit requirements, higher allowances for debt-to-income ratios.
- Limited closing costs.
- No mortgage insurance.
- It’s a lifetime benefit that can be reused (up to the eligibility amount each time).
- There are assumable loans which can have additional value for a potential purchaser of a home if the veteran no longer needs the entitlement.
- The funding fee can potentially be included in the mortgage.
- The veteran retains the right to void a contract if the appraisal does not meet the sales price.
- The funding fee may not be charged for veterans with service-related disabilities.
- If the veteran has a 100% service-related disability, they do not pay property taxes in Virginia.
