To many, a VA loan might seem like just another confusing financial term.
However, allow me to share my VA loan journey. It provides both a glimpse into my personal experience and nudges toward what could potentially be a life-changing decision for your family. With an emphasis on discretionary income (known as “residual income”) over the traditional credit score, VA loans are inherently compassionate. It’s a unique way to describe a loan but fitting, nonetheless.
I not only underwrite these loans for a living but also personally benefit from them. I relied on a VA loan to buy my home in southern California. As my financial situation evolved, the VA loan allowed me to explore a cash-out refinance and later, when financial markets improved, a VA Interest Rate Reduction Loan (VA IRRRL). It provided more than shelter; it became a means to build equity.
Drawing from my own experience, I’ve found that reflecting on the past often offers insights into the present.
A Little History…
The VA loan traces its origins back to the 1944 G.I. Bill of Rights. It served as a beacon of hope for returning WWII heroes. The concept was straightforward yet profound: offering guaranteed loans from private lenders to make homeownership dreams come true. More details can be found on the U.S. Department of Veterans Affairs website. I served 8 rewarding years in the USMC reserves, ensuring my VA loan journey echoed the precision and dedication I brought to my service.
(Sidenote: if the idea of a swift, efficient loan process grabs your interest, my earlier piece “Successfully Navigate Your Dream Home Closing” might just contain the guidance you need).
Life, unpredictable as it is, eventually steered my husband and me to a fixer-upper. We opted for the VA loan’s low down payment option for our new home. We invested our love, dreams, and finances into this house. When our aspirations exceeded our budget, the VA cash-out refinance became our financial lifeline. This opportunity provided us with breathing space and helped clear impending debts, setting us on our journey. When the market rebounded with lower rates available, we picked the VA Interest Rate Reduction Loan (VA IRRRL) for its lower rate and hassle-free appraisal requirement.
As the years went by, our family’s needs evolved, and our home’s value increased. We set our sights on a larger home, with the equity from our current humble abode paving the way.
To my fellow veterans and their supportive families: I share this story as a guide. If you’re considering a VA loan, understand its true value. It’s not just a financial tool; it’s a pathway to dreams and aspirations.
As a veteran, underwriter, and mother of two, I view this not just as a transaction, but as an investment in a brighter, more secure future.
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Thanks for reading!
For more insights and updates, connect with me:
LinkedIn: www.linkedin.com/in/phuonglee
Website: www.phuonglee.com
Medium: https://medium.com/@ptranlee