What is a VA Home Loan?
Since 1944, the VA has provided millions of veterans and active duty service members the chance to achieve homeownership through the VA home loan program. The VA partially insures each loan which allows the VA loan program to provide excellent benefits to service members that they wouldn't be able to find with regular lending programs. Some of the VA programs more popular benefits are competitive interest rates, flexible eligibility requirements, and lenient loan terms, but also include:
• Zero down payment required
• No mortgage insurance required
• Flexible debt-to-income ratios allowed
• Regulated closing costs
Who is Eligible for a VA Home Loan?
The VA home loan program is dedicated to helping veterans and active duty service members purchase homes. Because of the nature of the real estate economy across the country, it is becoming harder and harder to finance homes (or refinance existing home loans) in the conventional manner. Nearly 80% of all veterans and active duty service members who obtain financing through the VA loan program would not have been able to do so through a conventional loan program. To initially meet eligibility requirements for a VA home loan, borrowers must obtain a Certificate of Eligibility and:
• Have served 181 days on active duty or 3 months during war time
• Or have served 6 years in the National Guard or Reserves
• Or be the spouse of a service member who was killed during active duty
Although the eligibility requirements to secure financing through the VA home loan program are limited, most VA-approved lenders will require a mid-range credit score of at least 620 to qualify a borrower. Even those who are skeptical of their eligibility are still encouraged to apply for a VA loan as even those with an imperfect credit history have been approved.
Thanks to James Kelley of vabenefitblog.com for this useful info.
3 comments:
VA loans are long term loans for veterans which are available at a low or zero down payment. The Veterans Administration guarantees a portion of this loan. These loans are mainly available for a period of 15 or 30 years. Such loans are available at a fixed rate. The Veterans Administration will charge a funding fee while originating a VA loan which is generally based on the total loan amount. Apart from that, the funding fee is also based on the loan-to-value ratio, the Veteran's status and whether or not the Veteran has used the loan program earlier. This funding fee may be paid in cash or can be financed even.
VA approves the sale of the lot the buyer intends to make the mobile home, or sell the lot for the buyer to build a custom home. When you apply for a loan, VA loan requires a lot of construction in the loan. You can not get a lot of VA loan unwittingly place like home.
Thank you, thats very interesting information. I need to share with my friends.
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