Yes. Eligible veterans, service members, and certain surviving spouses can use a VA backed loan to purchase a qualifying home. That can include both resale homes and eligible new construction.
Quick answer: You can buy an eligible home with a VA backed purchase loan if you meet VA eligibility requirements, qualify with a participating lender, and the home and transaction meet applicable VA requirements. Eligible borrowers may also be able to purchase with no down payment and without private mortgage insurance.
What Types of Homes Can You Buy With a VA Loan?
VA financing is not limited to older or previously occupied homes. Depending on the property and transaction, VA financing may be used for several types of homes.
How Do You Buy a House With a VA Loan?
The VA home buying process is similar to other mortgage purchases, with additional steps related to VA eligibility and the property.
A buyer will generally:
- Confirm eligibility for the VA home loan benefit
- Obtain a Certificate of Eligibility
- Apply with a participating VA lender
- Complete the lender's preapproval process
- Find an eligible home
- Complete the VA appraisal process
- Complete lender underwriting
- Close on the home
A Certificate of Eligibility confirms basic VA eligibility, but it does not by itself constitute mortgage approval. Buyers still need to qualify with a participating lender.
How Much Do You Have to Put Down With a VA Loan?
Eligible borrowers may be able to purchase a home with no down payment when the home's sales price is not higher than its appraised value.
That can significantly reduce the amount of cash a buyer needs to save before purchasing a home.
However, $0 down is not the same thing as $0 due at closing. Depending on the transaction, buyers can still have closing costs, prepaid expenses, and a VA funding fee when applicable.
Do You Have to Pay PMI With a VA Loan?
VA backed purchase loans do not require private mortgage insurance or mortgage insurance premiums.
That is particularly notable because some other mortgage programs may require mortgage insurance when a buyer makes a smaller down payment.
VA financing can change the upfront cost equation
The combination of potential $0 down financing and no PMI requirement is one reason eligible buyers may want to understand their VA benefit before assuming they need a large down payment to purchase a home.
Actual qualification, closing costs, rates, payments, and loan terms depend on the individual borrower and lender.
Can You Buy a New House With a VA Loan?
Yes, potentially. VA financing is not restricted to resale homes. Eligible borrowers can use VA backed financing to build a home, and VA financing may also be used to purchase an eligible newly built home.
That means a VA buyer may be able to consider completed Move In Ready homes, homes already under construction, and other eligible new construction opportunities.
Does a Seller Have to Accept a VA Financed Offer?
A resale seller generally chooses which purchase offer to accept, counter, or decline, subject to applicable law. Financing type can be one of many terms included in an offer.
For VA buyers, that makes it important to understand the difference between being eligible for VA financing and knowing whether the seller of a particular home will accept the offer.
Allen Edwin Homes Accepts VA Financing
Allen Edwin Homes accepts VA financing on eligible new home purchases in Michigan, Indiana, and Ohio.
For VA buyers, that provides a clear path to explore new construction without wondering whether VA financing itself will prevent an eligible purchase from being considered.
Why Might a VA Buyer Consider New Construction?
Financing is only one part of choosing a home. New construction may also appeal to buyers looking for modern floorplans, newer building materials and systems, current construction standards, and a home that has not previously been occupied.
Buyers may also have different timing options. Depending on availability, a new home may already be complete, currently under construction, or earlier in the building process.
The right choice depends on your location, budget, desired move timing, financing, and home preferences.
How Many Allen Edwin Homes Have Closed With VA Financing?
VA financing is not an unusual transaction at Allen Edwin Homes.
Since Allen Edwin Homes began tracking VA financed transactions in 2017, 667 homes have closed using VA financing.
What Should VA Buyers Do Before Shopping for a Home?
If you are considering buying a house with a VA loan, it can help to understand your financing before getting too far into the home search.
Consider confirming your VA eligibility, obtaining your Certificate of Eligibility, and speaking with a qualified lender about your potential purchase price, estimated payment, closing costs, and loan requirements.
From there, you can compare homes with a clearer understanding of your financing options.
VA Home Buying FAQs
Frequently Asked Questions About Buying a House With a VA Loan
Can you buy a house with a VA loan?
Yes. Eligible borrowers can use VA backed financing to purchase a qualifying home when the borrower, property, lender, appraisal, and transaction meet applicable requirements.
Can you buy a new construction home with a VA loan?
Yes, potentially. VA financing may be used for an eligible newly built home when applicable VA and lender requirements are met.
Can you buy a home with no down payment using a VA loan?
Eligible borrowers may be able to purchase with no down payment when the home's sales price is not higher than its appraised value. Qualification and program requirements apply.
Do VA loans have PMI?
No. VA backed purchase loans do not require private mortgage insurance or mortgage insurance premiums.
Can a seller refuse a VA financed offer?
A resale seller generally decides which purchase offer to accept, counter, or decline, subject to applicable law. Allen Edwin Homes accepts VA financing on eligible new home purchases.
Can you use a VA loan more than once?
Yes, potentially. The VA home loan benefit is not necessarily limited to one lifetime use. Available entitlement and the borrower's circumstances determine how the benefit may be used again.
Does Allen Edwin Homes accept VA loans?
Yes. Allen Edwin Homes accepts VA financing on eligible new home purchases in Michigan, Indiana, and Ohio.
Looking for a New Home With VA Financing?
Explore Allen Edwin Homes available throughout Michigan, Indiana, and Ohio. VA financing is accepted on eligible new home purchases.
