Do You Qualify For A VA Home Loan?

By Darrel Jefferson


Whether you're getting your first home, or buying for the third or fourth time, understanding loans, mortgages or the financial elements of purchasing a home can be complicated. FHA loans and VA loans are typically easier to obtain for first-time buyers and have more lenient and versatile options.

VA loans are specialty loans reserved for veterans, current service members, surviving spouses and members of the Reserve or National Guard. There are stipulations on these, but in general, service members, veterans and members of the Reserve or Guard are eligible if they've been on active duty between 90 days and 24 months (please check with the Department of Veterans Affairs for more information). Surviving spouses of service members can generally qualify if they haven't remarried, or if they fall into a certain age bracket.

Applying for a VA loan is fairly simple. The whole process starts with talking to a lender about your options, and learning more about the program. After that, you can fill out the appropriate forms to send to the Department of Veterans Affairs. Once your qualifications have been ascertained, you're well on your way to qualifying for a new loan.

If you are the unmarried spouse of one that has died in service, you and your family are also eligible for the VA loan. If they have gone missing in action or have become prisoners of war you may also receive a VA loan.

Veterans with VA loans do not have to worry about paying any down payments before receiving their loans, unlike the rest of Americans. They will also not have to worry about paying for any mortgage insurance.

There is a small fee involved in the VA loan that is a fraction of the amount that you would be paying if you were getting any other kind of loan. If you are receiving disability compensation the fee is waived entirely.

While the disadvantages of a VA home loan are minimal, there are a few that exist. VA loans do have a cap on the amount of money that may be borrowed, making it difficult to qualify to purchase more expensive homes. Additionally, any fees associated with the purchase like closing costs, the cost of necessary repairs (as determined by a VA approved inspector), and funding fees (though these may be rolled into the bulk of the loan and are not due up front.)

Although there a lot of loans and a lot of programs out there, VA home loans are far and away the best choice. VA loans, VA refinancing and VA streamline loans are all options you can choose from, whether you're looking to buy or refinance a home. And best of all, they're just for you.




About the Author:



No comments:

Post a Comment