If you have served or are currently serving in the U.S. military, you most likely qualify for a VA loan. This is a mortgage loan that is backed by the Department of Veterans Affairs. But how do you use a VA loan
to buy a home in Knoxville?
How to Use a VA Loan to Buy a Home in Knoxville
There are three types of VA loans: purchase loans, interest rate reduction refinance loans (IRRRL), and
cash-out refinance loans. There are several benefits to using a VA loan, and there’s a lot you need to
know if you’re interested in applying for one:
- Benefits of VA loans
- How to get a VA loan
- How to find a lender
Related: Best neighborhoods in Knoxville
Benefits of VA Loans
VA loans boast some of the most flexible and attractive loan benefits. Furthermore, they are exclusively
for military personnel, veterans, and their families. The two most well-known benefits of VA loans are its
affordability and that it does not require private mortgage insurance. Complete benefits include:
- No down payment required
- VA rules limit the amount you can be charged for closing costs
- Ability to refinance the VA funding fee
- No private mortgage insurance requirements
- Closing costs might be paid by the seller.
- An assumable mortgage
- Repay your mortgage without penalty
- Negotiable and competitive interest rates
- VA assistance to veteran borrowers in default due to temporary financial hardship
- Warranty from builder and assistance from VA to obtain cooperation of building for homes
inspected by VA during construction.
VA loans are available to veterans, active-duty personnel, reserve members, National Guard members,
and some surviving spouses. However, there are other criteria you must meet. You need suitable credit,
sufficient income, and a valid Certificate of Eligibility. Furthermore, you must use the home for your own
occupancy. You can see a detailed list of requirements on the Department of Veterans Affairs website.
After you have made sure that you are eligible for the VA loan you will need to find a lender that
participates in the VA home loan program. Once you have chosen a lender, you need to obtain your
Certificate of Eligibility. You can apply for this online or your VA-approved lender can request one on
your behalf. Then you can apply for your VA loan. The VA lender will help you complete the necessary
steps to finance your home. Yes, it’s really that easy.
Finding a VA Home Loan Lender
Finding a lender for your VA loan isn’t as hard as you might think. You can ask for recommendations
from friends and family, ask your realtor for suggestions, or search through the VA website. As with
traditional loans, it might benefit you to shop around and speak to several lenders before making your
If you’re eligible, you can take advantage of the benefits of using a VA loan to buy your home in
Knoxville. Using the VA loan is not difficult, and it will greatly benefit you and your family in the long run.
Are You Buying a Home in Knoxville?
If you’re ready to buy a home in Knoxville, I’ll help you find one that’s perfect for your needs. Call me at 865-368-5150 now and let’s talk.
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