Veterans Administration (VA) home loan mortgage - VA home loans operate in very much the same way as FHA loans do, the big difference is that they are provided to veterans only. VA Home Loans are made to eligible Veteran's by private lenders such as banks, mortgage brokers and direct lenders. The difference is that the VA guarantees a portion of the loan so the lender is protected against losses if the borrower does not make the payments and defaults on the loan.
VA Home Loans are intended for personal home purchases only and are not eligible to be used on rental or investment properties. The Veteran borrower must certify that they or their immediate family intend to personally occupy the home within 60 days of the closing date. VA Loan fees may be paid in cash at closing or included in the loan amount and financed by the veteran over the life of the mortgage.
VA home loans are available to veterans, reservists, active service members, and members of the Public Health Service. In 1982, Congress passed a law that requires a veteran borrower to pay a one-time funding fee on a VA home loan. VA home loans are maxed at $417,000 in most states, while Alaska and Hawaii allow up to $625,000. VA loans will only guarantee up to 25% of the loan amount or $104,250; in Alaska or Hawaii $156,375. VA Home Loans are a great tool to help any veteran obtain either the starter home or the final retirement of his/her dreams.
The big benefit of VA home loans are that they do not require private mortgage insurance. Veterans also have the opportunity to choose a fixed rate or adjustable rate, known as the hybrid ARM product. Veteran home loans can save you a great deal of money by giving you an excellent rate, with no monthly mortgage insurance. Plus, it is easier to qualify for a VA military loan as compared to a conventional mortgage.
Veteran home loans can save you a great deal of money by giving you an excellent rate with only one loan and with no monthly mortgage insurance. Plus, it is easier to qualify for a VA military loan as compared to a conventional mortgage. Veterans interested in learning more about all that they are entitled to should visit The Department of Veterans Affairs website to learn about the many benefit programs currently being offered.
Veterans who had a VA loan before may still have "remaining entitlement" to use for another VA loan. The current amount of entitlement available to each eligible veteran is $36,000. Eligible Veterans can apply online and receive up to 4 competing offers within minutes. |