Short Guide on VA Loans in New Jersey (2021)

If financial loans were to be rewarded, VA Loans should receive a meritorious medal.

Originally made to assist returning service members, VA loans have helped more than 25 million veterans, active service soldiers, and their families to have a home.

If you are one of them and are planning to purchase a New Jersey property, this article may help you explore the basics and the how-tos of VA loans.

Who may avail of a VA loan?

You may be eligible for a VA loan if you attain one of these general requirements:

• Have served an active service of 181 days during peacetime

• Have served for 90 days or in active service during wartime

• Have served in the National Guard or Reserves for six years

• A spouse of a fallen service member who died while in the active service or due to service-related disability complications

This more detailed eligibility table (https://www.va.gov/housing-assistance/home-loans/eligibility/) may be a great help.

What are the types of VA loans?

There are two basic types of VA loans:

• VA direct loan, which is a VA program for Native American veterans and their spouses.

• VA-backed loan where the VA helps you to have better terms with private lenders.

These loans may be used to purchase, build, repair, or refinance your previous home loan.

What are the benefits?

A VA loan has numerous benefits including zero down payment option, lower interest rates, and no mortgage insurance premiums. Moreover, it does not charge a prepayment penalty and has a lower closing cost.

What should be the considerations before getting one?

The first consideration will be the availability of licensed private lenders available in New Jersey. Also, you may want to check the loan limits of the state. VA borrowers with full loan entitlement have no loan limit, but if you do not have a full VA entitlement, you can check your loan limit here (www.vamortgagecenter.com/answers).

Also property tax, which varies per county, should be considered.

How to obtain a VA loan?

Generally, the steps are simple in obtaining one:

• Choose a VA-approved lender

• Secure a Certificate of Eligibility

• Pre-qualify for the target loan amount

After these steps, you may start looking for the house you want to buy and sign a purchase agreement.

If you are ready and excited for this fourth step, contact a licensed and qualified real estate professional at (newjerseyresidence.com) for a more seamless process and to help you get all of the advantages of your VA loan.