Shortlink

A Basic Overview of the Veterans Administration Home Loan Program

eBenefits.Va.Gov

The Loan Guaranty Services of the United Stated Department of Veterans Affairs offers a guaranty program for veterans seeking loans for home building or purchase. The program provides assistance to veterans to enable them to retain and buy homes through a government partial guarantee of the loans. This Veteran Administration Home Loan guarantee is often made in lieu of a substantial down payment which is helpful to those who cannot afford making the down payment. As part of a veteran support program there are several eligibility requirements that need to be fulfilled to receive coverage from the program. Veterans and other qualified individuals may check with their local VA offices or through VA loan program experts if they are eligible to receive a loan under the program. eBenefits.Va.Gov

How the Program Works

The main idea behind the program is that the government, through the Veterans Administration, guarantees or “stands behind” the loan so that if the borrowers can no longer make the payments, the lender can goes to the VA to cover any loses caused by the loan. The loan itself does not come directly from the government but the system makes VA loans for veterans possible for those without the means to provide the often substantial down payment, or who would not be approved for a loan without the backing of the VA.

Advantages of the VA Loan

The primary advantage provided by the Veterans Affairs home loans program is that a veteran can buys a home without down payment, since the price of the property does not exceed the apprised value. Closing costs are also reduced because of the limits imposed by the VA and can also be paid for by the seller depending on negotiations of the sale price. No penalty fees can also be charged to the borrower if the loan is paid of early. And finally, the VA may be able to provide some assistance if the veteran has some difficulty making payments. eBenefits.Va.Gov

A VA home loan does not require the veteran to be a first-time home buyer and the benefit can be reused and the loans itself are assumable by person that is qualified. There is no maximum loan amount or the VA but there is a maximum amount of that can be guaranteed depending on the location of the property. VA approved lenders decide if the prospective veteran borrower through calculating the debt to income ration of the borrower or doing a residual income calculation. Asking the VA-approved lender is one best way to learn how large a loan a particular veteran can qualifies for.

Valoandesk.com offers loan for veterans. For more details click here Veterans Administration Home Loan and VA Loans for Veterans.

Shortlink

Veterans Home Loans: Regular Purchase

eBenefits.Va.Gov

Veteran Home Loans offer a veteran up to 100% of the cost of a home. This means that a veteran does not have to make payment out of his own pocket. He simply has to prove his eligibility to avail of these government loan benefits by producing certain required documents. He must present a letter issued by the defense department certifying that he has a certain number of years of service with the U.S. Military. This is called a Certificate of Eligibility. It will also state that the veteran has conducted himself honorably during the tenure of his service and that his discharge from the U.S. Military service was on regular grounds. The following persons also qualify for this type of veteran loan:

• Surviving spouses.

• Service members who have been on active duty. This includes officers of the public health service who were commissioned for duty, including those who work in the National Oceanic and Atmospheric administration.

• Reserve and National Home Guards who had to perform active duty.

The entire process of applying for Veteran Home Loans is simple. The first step is to get in touch with a professional lender who will examine your documents and establish your eligibility including the fact that the government loan that you are planning to apply for is for the home where you will be living in. Of course, it goes without saying that the cost of the unit that you plan to purchase must be equal to or more than the amount of loan that you are applying for. Besides he will also examine your income statement which should reveal that you would be able to comfortably meet the monthly-equated installments and have sufficient balance in your income after the monthly repayment to run your home easily as well as to meet all minor eventualities. eBenefits.Va.Gov

Some of the special benefits of the Veteran Home Loans for the veterans are summarized below-

1. They can borrow up to maximum limit of $417,000.

2. This veteran loan program does not require any initial payment from the veteran.

3. The U.S. Government will establish certain limits to the amount of closing costs and origination fees that the lenders charge, as well as their fees. These limits will be usually in favor of the borrowers.

4. The borrower is absolved from having to pay the cost of private mortgage insurance.

5. These Government Loans can be finalized within a week to ten days.