A veteran home loan is designed to guarantee veterans certain options. Most loans of this type are used to purchase existing homes, but refinancing existing mortgages or constructing new dwellings may also be possible under this kind of arrangement. In certain cases, a VA loan can be taken out to increase the energy efficiency of a home before or after it is purchased.
The Department of Veterans Affairs, commonly abbreviated as simply VA, has assisted over fifteen million veterans to purchase a primary dwelling. The VA itself does not loan the person the money, but it guarantees the loan, encouraging the lender to relax fees and interest rates for individuals who have served in the armed forces.
The limitations of such arrangements depend on the amount being borrowed, and whether or not the individual is completing active duty. Financial experts claim that the mortgage industry has been helped significantly by the many loans that are guaranteed by the VA. They also state that loans of this kind are advantageous for both lenders and borrowers.
Such loans were designed to compensate women and men for serving their country. However, the rates and terms associated with such arrangements are not always better than those found with traditional loans. For instance, a borrower who is a prequalified buyer may be able to get the same or similar rates on his or her own, provided the person has a positive credit history. On the other hand, veterans with few or no assets will find the terms and conditions of VA loans very beneficial. In certain instances, such arrangements are the only way a veteran can purchase a primary residence.
The buyer's military service is the primary requirement necessary to qualify for such an arrangement. Other qualifications include the time and nature of his or her service. To qualify, one must also have served a minimum of 180 continuous days when the country was at peace, or participated in active duty for 90 days during wartime. In the majority of instances, if an individual was discharged dishonorably from any service branch, such loans will not be option.
To obtain VA loans, an individual must first acquire an eligibility certificate. The latter can be obtained by filling out the appropriate application at the Department of Veterans Affairs. As soon as such paperwork is received, the person can sign mortgage papers with a private seller or realtor. The VA must typically conduct an appraisal on the house, even though the primary lending institution will likely complete their own appraisal as well.
The United States Department of Veterans Affairs has long guaranteed home loans made to veterans for many years. On October 10, 2008, then-President George W. Bush signed the Veterans' Benefits Improvement Act. The latter of which updated the program so that it could meet the realities of the housing market collapse taking place at that time.
Those who believe they qualify for a veteran home loan are wise to pursue this course of action. This is especially true if owning a home would otherwise be financially out of reach. Anyone planning to apply for such a loan should consider speaking to a financial planner or real estate agent in order to receive help with the process.
The Department of Veterans Affairs, commonly abbreviated as simply VA, has assisted over fifteen million veterans to purchase a primary dwelling. The VA itself does not loan the person the money, but it guarantees the loan, encouraging the lender to relax fees and interest rates for individuals who have served in the armed forces.
The limitations of such arrangements depend on the amount being borrowed, and whether or not the individual is completing active duty. Financial experts claim that the mortgage industry has been helped significantly by the many loans that are guaranteed by the VA. They also state that loans of this kind are advantageous for both lenders and borrowers.
Such loans were designed to compensate women and men for serving their country. However, the rates and terms associated with such arrangements are not always better than those found with traditional loans. For instance, a borrower who is a prequalified buyer may be able to get the same or similar rates on his or her own, provided the person has a positive credit history. On the other hand, veterans with few or no assets will find the terms and conditions of VA loans very beneficial. In certain instances, such arrangements are the only way a veteran can purchase a primary residence.
The buyer's military service is the primary requirement necessary to qualify for such an arrangement. Other qualifications include the time and nature of his or her service. To qualify, one must also have served a minimum of 180 continuous days when the country was at peace, or participated in active duty for 90 days during wartime. In the majority of instances, if an individual was discharged dishonorably from any service branch, such loans will not be option.
To obtain VA loans, an individual must first acquire an eligibility certificate. The latter can be obtained by filling out the appropriate application at the Department of Veterans Affairs. As soon as such paperwork is received, the person can sign mortgage papers with a private seller or realtor. The VA must typically conduct an appraisal on the house, even though the primary lending institution will likely complete their own appraisal as well.
The United States Department of Veterans Affairs has long guaranteed home loans made to veterans for many years. On October 10, 2008, then-President George W. Bush signed the Veterans' Benefits Improvement Act. The latter of which updated the program so that it could meet the realities of the housing market collapse taking place at that time.
Those who believe they qualify for a veteran home loan are wise to pursue this course of action. This is especially true if owning a home would otherwise be financially out of reach. Anyone planning to apply for such a loan should consider speaking to a financial planner or real estate agent in order to receive help with the process.
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