VA Home Loans | VA Mortgage Financing

April 10th, 2018

Posted April 10th, 2018 under understanding the VA loan

VA Loans - Benefits, Eligibility, And Applying

Tags: what is a VA home loan?, am I eligible for a VA loan, benefits of a VA loan

VA Loans - Benefits, Eligibility, And Applying

Buying your dream home is something that millions of Americans want to do. You'll need to be able to secure a home loan in order to do so, and this isn't' always easy. Luckily, certain programs from the US government can make it easier. VA loans are a perfect example of this, and veterans will want to give them consideration.

What Is A VA Loan?

A VA loan is a type of mortgage loan that is backed by the Department of Veterans Affairs. It is only available to those serving or who did serve in the US military. Veterans can qualify for a VA loan even if they've been turned down for a more traditional loan.

There are actually three types of VA loans:

  • Purchase Loans - Used to buy your dream home
  • Interest Rate Reduction Refinance Loans - Used to refinance existing mortgages for a lower interest rate
  • Cash Out Refinance Loans - Used to refinance and receive additional money using the equity in your home

With no cash down payment required, VA loans are a great option for those with decent credit and steady income who still can't get a traditional loan because they don't have the down payment needed to qualify. As such, they're worth taking a closer look at for any veteran considering buying a home.

What Are The Eligibility Requirements?

In order to qualify for a VA loan, you'll have to be a veteran or active military member. Those who qualify include:

  • Veterans
  • National Guard members
  • Reserve members
  • Active military members
  • Surviving spouses in some cases

Along with your membership in the military, you also need to have a good credit score, steady income, and a good debt to income ratio. The requirements are laxer than a traditional loan might be, and the entire program is designed to make it easier for veterans to get a loan and become a homeowner.

What Are The Benefits?

The VA loan's design means that it provides those who qualify for it with some of the best loan opportunities out there. They're easier to get, and the loan that you receive is better than more traditional loans often are. Just look at some of the benefits offered by a VA loan to see why so many veterans use this as the path to home ownership.

  • No down payment is required unless a lender has their own requirements

  • Interest rates are much more competitive than other government-backed loans

  • The VA funding fee can be financed in the loan

  • The VA limits total closing costs, saving you money

  • Closing costs can be paid by the seller if they choose it

  • Doesn't require private mortgage insurance premiums

  • You can prepay the mortgage without a penalty

  • There is additional assistance for veterans who are in default due to a temporary hardship

In short, a VA loan is one of the best options for a veteran to use when trying to secure a home loan. It's easier to qualify for and will leave you with a loan better than you might have thought you could get.

How To Get Your Loan

VA loans aren't actually issued by the VA. They just back and guaranteed the loan. Instead, you'll have to find a lender that uses the VA home loan program. Provide them with a certificate of eligibility from the VA, and you'll be able to apply for and get your loan if you meet the other basic requirements.

We can help you get the loan that you need for your home. Contact us today to find out more about the VA loan or to get yours.

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