VA Home Loan

Look at VA Home Loan Rules Before You Apply

There are many myths about a VA home loan, and some of those can damage your ability to get the benefits you deserve. Even if you've checked into the possibility of a VA home loan in the past, take a look at the latest news regarding VA home loans. You may be surprised at what's changed.

The Veteran's Administration is an agency charged with overseeing many aspects of benefits for Veterans of the US armed forces. But representatives of the VA aren't likely to come knocking on your door to see if you're receiving all the benefits you're entitled to. That includes the VA home loan. Even if you're buying a house and applying for a loan from a private lender, don't expect your VA benefits to fall into place.

The purpose of the VA home loan is to offer lenders the security that loans will be repaid. That security, along with some additional perks, can help veterans purchase a home. But the program has some important restrictions.

The goal of the VA home loan program has never been to help veterans finance real estate investment ventures. One requirement for qualifying for a VA home loan is that the home being financed must be the primary residence of the veteran applying for the loan.

That once meant that a VA home loan couldn't be used for a second home, but that is no longer technically the case. The increasing number of people who are buying a second home with the intention of retiring to that home has prompted a way for veterans to use proceeds from a VA home loan to also finance a second home. Apparently, the rule that the home has to be the primary residence still holds true, but the primary residence means only that the veteran lives there at least six months of the year. And if the veteran has plans to retire immediately, that second home could very well be considered the primary residence for the purposes of the VA home loan.

Whether you are recently discharged or have been out of the service for many years, don't discard the idea of the VA home loan program for your next home purchase until you look into the most recent rules and regulations.