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National Guardsmen and Reservist who have not been called to active duty must serve at least six years before eligible for the VA loan.
Pros of Using VA Home Loan Benefits:
VA Loans have many advantages for a veteran homebuyer. First of all, you can purchase your primary residence without a down payment. Secondly, there are many other VA loan products available for the veteran. Comparing to other conventional loans, the process of VA Loan is designed to be simple and easy possible. Over the years, VA tries to increase in available Entitlement. Therefore, it is possible for a veteran to buy a second primary home without selling the first primary home.
Cons of Using VA Home Loan Benefits:
Because VA Loan does not require you to put a down payment, you will probably end up owing more than the value of your house, because you did not have any equity built into your home. In addition, you need to pay a Funding Fee which is the fee that the Department of Veteran Affairs uses to manage your VA loan program. If you keep using you VA Home Loan benefits, the Funding fees will jump up to 3.35%.
So why would you want to owe more than what your house is worth? Does it make any financial sense? Yes, it does. Over time the value of your home will increase. When you make a monthly payment, you will also pay down your loan balance. However, it is not guarantee that your home will always go up in value. Some home price depreciates over time. Just because you are eligible for VA loan, it does not mean that you need to use it. You still need to do your homework and shop around for the best offer.
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