1. You must meet military qualifications.

VA loans are available to active duty military personnel, and in most cases, these loans are available to retired personnel as well. Some VA loans are open to the spouses of soldiers who have died in combat provided those spouses have not remarried yet. To find out your eligibility, you will need to check with your regional Veteran Affairs office.

2. Fixed and adjustable rate mortgages are available.

Though adjustable rate mortgages, or ARM loans, have gotten bad press lately, they still are the best option in some situations. The VA makes loans with adjustable and fixed interest rates available to help you get the best loan for your financial situations.

3. Veterans can get second VA loans in many situations.

VA loans are not a one-time offer. Veterans can get second loans under certain situations. Another veteran can take over the current loan by purchasing the home, transferring the VA loan from one person to another. A veteran who has paid off his or her loan also can apply for another loan.

4. VA Streamline loans come with a funding fee.

You must pay a fee to close a streamline loan. This fee is smaller than what you would pay with a conventional loan, but it is there to help offset the cost of the loan. This fee is non-negotiable, but you can ask for written details about why you have to pay it.

5. VA loans have upper limits.

One of the restrictions the federal government places on VA loans is a limit on the amount of money you can borrow with one of these loans. The amount changes over time as Congress decides the limits should be increased. Check with your regional VA office before looking for a home to find out the current loan limits.

In addition to a mortgage loan, the VA also makes available equity loans. Equity is the difference between what you owe on your home and its value. The difference is available in the form of an equity loan. To qualify for this loan, you will need to meet certain debt-to-income qualifications and other criteria.

Tags: VA loans

Label: Five Things You Should Know About VA Loans