The VA loan permits qualified home buyers to buy a home with an attractive interest rate when they may otherwise be required to rent or buy a smaller home. Lenders provide VA mortgages with zero down payment to eligible borrowers because the Department of Veterans Affairs (VA) insures the loan.

It's not always easy to save enough money for a down payment being in the military even with a housing allowance and basic pay. Because many active service members don't have enough down payment saved for the expensive homes near Norfolk Virginia Naval Station, the VA loan can offer them a tremendous advantage.

Qualifying For No Down PaymentAlthough FHA and conventional loan limit rules in 2020, VA loan no longer have a loan limit. This is all courtesy of the Blue Water Navy Vietnam Veterans Act of 2019 that was passed last June 2019 by a vote of 410-to 0. This eliminated VA loan amount limits as of January 1, 2020.

So if qualified, veterans can borrow much higher amounts without being subject to making down payments. Although lenders can have overlays and impose their own maximum loan limits and criteria. This is especially useful in more expensive areas such as Orange County, San Diego, and Norfolk, Virginia each with a healthy population of veterans.

Learn how much home you can buy Since military families frequently move within a few years, you may decide to buy a smaller home to help improve your possibility to sell the home promptly once it is time for you to leave.

Alternatively, you may want to rent the home to tenants if you relocate due to work orders. In that scenario, be sure you can afford to pay the mortgage payment if the home is vacant for a month or more. These are all good reasons to discuss your housing goals with a loan officer.

Seek advice from a trusted lenderAlthough some mortgage companies brand themselves as "VA lenders," you are able to work with just about any mortgage company you want for your VA loan.

The final decision of a VA lender should be based on customer reviews, a referral, and if the lender aligns with your personal objectives rather than self-proclaiming themselves as a VA lender. Because every person's loan is different, you'll want to work directly with an experienced licensed loan officer who can customize your loan to suit your needs as far as fees and possible credits.