The VA Loan explained
Talk to anyone who’s ever worn the uniform and chances are you’ll get a different answer about the VA loan. It’s notoriously complex and, for lots of us, really confusing, too. In this episode, David unpacks everything you need to know about the loan and how to use it.
VA Loan Basics
The VA Loan allows service members to buy a home with up to four units with no money down. You’ll usually have to pay about two or three percent for closing costs and lender fees, but it’s still a steal. As of January 2020, there’s no limit to the price of the first house you buy. You can buy more homes, but you have to intend to move into the property as your primary residence.
So Many Benefits!
Another benefit to the VA loan is its very low-interest rates. You likely won’t find lower on a 30-year mortgage. Plus, you don’t have to pay mortgage insurance, which will save you on monthly payments.
The VA loan does have a funding fee, but it gets wrapped into the loan. Think of the funding fee as a down payment or lenders' fees. Furthermore, it is waived if you are 10-percent disabled or on active duty with a Purple Heart. Regardless, the funding fee is still much less than mortgage insurance so it makes sense for you to take full advantage of it.
Ready to Learn More?
David Pere is an active-duty Marine who is on a mission to educate the military community about financial readiness. Most people hear that term and roll their eyes, but Pere wants everyone to know that readiness can be achieved – without a lot of effort. He teaches personal finance and real estate investing to service members to help increase savings and increase their chances of achieving financial freedom.
Want to learn more about Pere? Check out the Military to Millionaire website, and connect with him on Instagram or Facebook. Subscribe to his YouTube channel here! Take a look at David's book – The No B.S. Guide to Military Life here.
Looking for more ways you can be financially strong? Check out what's new on our Mighty Money page.