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Can you get a VA loan and buy a car at the same time?  

Can you get a VA loan and buy a car at the same time?  

Protecting our nation is one of the most heroic things every individual can do. Those who choose to serve, understand the ultimate sacrifice they make for the good of the country. It is the reason why servicemen and servicewomen, as well as veterans, deserve to be compensated for their bravery.

The US government offers a unique VA Guaranteed Home Loan Program to give back to these brave men and women. It has helped veterans to acquire home loans for over 70 years. It has maintained its popularity, due to benefits it offers to military veterans and active duty service people. Since its inception, more than 20 million people have used these mortgage products to help them buy a home at favorable rates.

You need to know that the Veterans Administration does not provide the funds for these home mortgages; many types of loan lenders do, who participate in this program, and know its requirements. If you are looking for a mortgage for a new house, always ask professionals if they are involved in the VA Guaranteed Program. Many institutions have specialized departments whose sole purpose is to help our military members applying for these credits. They will make sure you are familiar with every step of the process.

1

VA loans do not require a down payment, which makes them different from traditional types of mortgage products. Usually, you need to come up with a certain amount of money before borrowing anything, and it can vary depending on the total price of the home. Many families need to save up for years, to come up with an adequate down payment. However, with a VA loan, you do not need to stress about it, as you can skip it entirely. It is much easier to become a homeowner with no money down.

The borrower usually gets a lower interest rate than what is available with other types of loans. Lower rates lead to lower monthly payments, which means an individual will be able to pay the borrowed money back a lot faster than others with a higher interest rate. Also, there is no private mortgage insurance or PMI, so the military men and women can have even lower monthly mortgage payments, as opposed to individuals with standard products. Banks usually require insurance on their loans in case of default, and the amount of insurance is an added fee for loans that don’t meet the required 20% down payment of the estimated value of the home. If a borrower defaults on the credit, the lender will be protected. However, military people are not required to have PMI. If you have any questions, contact a VA loan advisor.

2

If you are buying a house, you can include the personal property, such as a car, in the purchase agreement. The rule is that the VA loan amount can’t exceed the reasonable value of the property, and if the contract price exceeds this value, you will probably need to make a down payment, or to forego the car or other items. The main issue is that most homeowners don’t want to include their vehicle into the sale of their home. Whether you will be able to buy a car with the house or not depends on your circumstances.

Victor-Dunn

Avid food geek. I love running, coffee and waking up early.

Victor-Dunn
Victor-Dunn

Avid food geek. I love running, coffee and waking up early.

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