VA Loans and How They Work

New Orleans VA home buying

New Orleans VA home loans

Who qualifies for a VA home loan?

Most members of the military, military veterans, reservists and National Guard members. Spouses of military members who died while active duty or as a results of a disability that’s service connected are also eligible.

How do VA loans work?

VA loans work like any other mortgage loan in that buyers make monthly principal and interest payments plus any escrow fees required by the lender for insurance and taxes

Do I need a down payment?

The biggest advantage of using a VA loan is that no down payment is required

What about closing costs?

Sellers can provide assistance to VA buyers in the form of 4% of the purchase price in concessions that can be used towards closing costs and pre-paid items like insurance premiums. Typical VA closing costs range from 1%-5% of the loan amount.

Are there VA loan limits?

In the New Orleans metro area, the maximum VA loan is $424,100

Watch out for property condition

Because the loans are backed by VA, property condition is of paramount importance. Fixer uppers are rarely VA approved. Instead, buyers should look for either new construction or homes that don’t have deferred maintenance or safety issues

Who makes VA loans in New Orleans?

It’s a common misconception that Veterans United or USAA are the only places to get VA loans. Nothing could be further from the truth! Just like with any other mortgage product, there are plenty of local lenders that not only offer VA loans, but have an excellent understanding of the typical costs in the New Orleans area. If you need a referral to someone local that’s offering VA loans, feel free to call us at 504-327-5303.

 

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