Have you been planning to take advantage of the VA home loan benefit you earned but wondering how to get the process started? Is San Antonio TX on your shortlist of home destinations? If so, you’re already ahead of the game.  Read on to learn how to use your VA benefit to buy a home while interest rates remain near record lows—and why San Antonio is the perfect place to settle in.

What is a VA Loan?

Let’s start with the loan itself.  Quite simply, a VA Loan is a government-backed VA mortgage loan set aside especially for veterans and service families. The loan amount is guaranteed by the United States Department of Veterans Affairs (VA) and qualifiers can use it to buy a new property or refinance an existing mortgage. Most VA loans have a $0-down feature, helping thousands of families get the jumpstart needed to purchase the home of their dreams. In addition to waiving the down payment, VA loans often provide other benefits such as reduced closing costs, competitive interest rates, and no requirement for private mortgage insurance (PMI). Veterans can also benefit from 4% seller concessions, no prepayment penalties, and financing for funding fees.

Types of VA Loans

• A VA IRRRL (Interest Rate Reduction Refinance Loan) is the most commonly chosen VA loan option. Also known as VA streamline refinance, this is a low-cost refinance loan that is only available to veterans who currently have a VA, conventional, USDA (US Dept. of Agriculture), or FHA (Federal Housing Administration) loan. 
• The VA Cash-Out Refinance is a loan option that allows qualifying homeowners (veterans with and without current VA loans) to refinance their mortgage and take out cash from their home’s equity. 
• Using VA Energy Efficient Mortgage loans, veterans can borrow additional funds to make energy-efficient impr

Who May Benefit from a VA Loan?

VA loans are available to a variety of military personnel who have served or are serving, and housing grants are also set aside to modify homes that accommodate those who have been injured in active duty.  The loans are available to eligible qualifiers with no maximum age limit, and the benefit may be reused in accordance with the policy. As evidence of the program’s robust activity, in 2013 the VA guaranteed $36 billion in home loans to nearly 630,000 service members and veterans.

The VA home loan program has been available since 1944. It offers significant savings potential and is designed to meet the needs of military families, which means that buyers who qualify do not need perfect credit or substantial down payments. Veterans who qualify for VA loans also have specific VA loan entitlements. The entitlement refers to the dollar amount that the Department of Veterans Affairs will guarantee on each VA home loan. It d

The US Department of Veterans Affairs sets the guidelines for eligibility, including time of service requirements, and provides everything you need to know to facilitate the appraisal and streamlined  application process. Firstly, as a potential home buyer, you’ll need a Certificate of Eligibility, which is available to those who have served in a variety of categories:

• Veteran
• Active Military Service Member
• Current or Former National Guard or Reserve Member
• Discharged Member of the National Guard or Reserve (Never activated)
• Surviving Spouses of Veterans Who Died on Active Duty or Had Service-Related Disabilities

You can apply for your COE at eBenefits.VA.gov. 

Once your eligibility is confirmed, you’ll choose your loan type and navigate the loan process with the mortgage lender of your choice, which will review your credit and income requirements. This helpful video from the VA provides an excellent overview of these valuable loans in under two minutes.

Why Do Veterans Choose San Antonio?

Your VA loan is a benefit you’ve earned as a result of your dedicated service to the country.  With this in mind, perhaps the most important step in navigating the VA loan process and selecting a VA approved lender is choosing the right city, community, and home for your family.  According to an article by Forbes, San Antonio ranks #5 among The Most Affordable Places for Veterans to Live in 2020. As outlined in the article, not only is San Antonio a cost-effective location for military families, it tops the Texas list for tourist destinations due to its rich history, vibrant culture, and variety of outdoor activities. 

In addition to these valuable features, San Antonio offers plenty of services and health care options for veterans and service members including hospitals, outpatient clinics, and vet centers.  The city’s Office of Military and Veteran Affairs is a trusted resource for events, services, and benefits of interest to military families.

Which San Antonio Community is Right for You?

With two family-oriented communities in San Antonio, Hakes Brothers makes it easy for you to put your VA loan to good use in a neighborhood you’ll love. As one of the largest homebuilders in the region, Hakes Brothers has helped over 3,000 families enjoy the home that best fits their lifestyle. Hakes Brothers is known for its professional architecture, innovative design, and high-quality construction. Discover new homes in San Antonio at Hunter’s Place or Hannah Heights by Hakes Brothers, you’ll enjoy neighborhood camaraderie and picturesque surroundings in close proximity to shopping, restaurants, and outdoor activities. Best of all, the Hakes Brothers team understands the VA loan process and will help you navigate the details so you can quickly begin enjoying everything San Antonio has to offer for the home buyer.