In this episode of From Military to Millionaire, David talks about VA loans. Pretty much everyone knows they're great, right? But do you know how to use it to your best benefit?
To be eligible for the VA loan, you have to meet only one of the following conditions, with the stipulation that you received a general discharge or better.
- You’ve served 90 days of active service consecutively during wartime.
- You’ve served 181 of active service during a period of peace.
- You have a minimum of six service years in the National Guard or Reserves.
- You’re the un-remarried spouse of a service member who died either in the line of duty or as a result of a service-related disability.
- You’re the spouse of a service member who is missing in action or a prisoner of war.
To get the VA loan, first apply for a certificate of eligibility (COE) confirming your eligibility. Often, the lender is willing to get your certificate of eligibility for you, so ask about that. You can get financing for the VA loan on your own, jointly with a spouse, or jointly with another veteran. You can buy a property with more than four units when the property is owned by two or more eligible veterans. In this case, you’ll get the four units, a business unit, and one additional unit for each owner.
While the VA loan doesn’t have a minimum credit requirement, private lenders usually do. It’s usually between 580-620. The loan is not meant for investment properties, so you must intend to use the property as your primary residence for at least a year after you buy it. After that, you’re free to move and continue renting 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.
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