VA loan eligible and want to understand the program better? Don't take out a VA loan till you read about these 3 disadvantages to the program.

VA home loans can be a very powerful tool for those who are eligible.

There are a number of advantages on both VA purchase and Refinance loans at the same time there are some drawbacks that must be considered.

VA funding fee-

This is an upfront fee that must be paid on VA loans to help fund the program and protect it from loss unless exempt you will have to pay this fee with each VA loan.

Exemptions include- "Veterans with a disability rating of higher than 10%, Purple Heart recipients, and surviving spouses of veterans who died in the line of duty" Source Veteransunited.com

Strict appraisal

Unless you are doing an IRRRL you are going to need your home appraised to get a VA loan. This can make both purchases and refinances a headache. Some home sellers will even not be willing to take VA offers because of this.

I have seen homes not pass for extremely minor issues so if you do want to do a VA home loan you may want to send your loan officer pictures of anything in the home that you feel may be problematic.

Limitations

There are too many restrictions to name all in this article. Some of the larger ones are limits on entitlement, difficulty having two VA loans at one time and not having the ablity to use it on an investment property.

Best advise for using the program

I would strongly recommend only using a loan officer that is experienced with the program and has done at least a couple of VA loans of the same type you are looking to do. You also have the VA office as a resource as well. https://www.va.gov/

To see what you qualify for feel free to use my streamlined online web portal at fundedbyben.net or call me direct at 443-607-2332

Benjamin Kell NMLS 2126313