VA Home Loan
When one learns about loans,
there is one loan that seems to be different in many ways than all of the rest. The loan we are referring
to is called a VA home loan. To better understand how
these loans work and how beneficial they are to veterans, let's go over the key components which make these
types of loan programs different from other mortgage programs that exist out there.
VA Mortgage programs are only available to
Veterans of the United States Military, Army, Navy, and any other armed services
organization. In order for a veteran to be able to qualify for a VA loan, they must not currently have a
VA loan, and they must be able to prove their VA status. This qualification is in
force to make sure that each veteran only has one VA loan at a time, and in order to get another VA loan,
they must sell the home, or get a mortgage refinance and get a
different loan product in order to get a VA loan again.
The biggest thing that sets VA loans apart from
other loans is that a VA loan provides 100% financing, and can even go up to 103% if necessary to cover all
closing costs involved. This is a huge
advantage as the person buying the home will not have to put any money down at all to close on the
home. While the loan will still be based off of income and credit history, the person buying the
home can have the entire principle balance, and any additional closing costs all covered by the
loan. This difference alone makes this loan extremely desirable and is an amazing perk for those
that have served in the armed forces for our country.
For veterans with less than perfect credit, this
type of loan can be great as a bad credit mortgage to get them into a
home. Mortgage refinancing to a VA loan is also a good idea for a
veteran that already has a home loan but that has not used their VA eligibility. All the way around, a VA loan is the cream of the
crop when it comes to mortgage loans that are easy to qualify for and that require little money from the
borrower in order to purchase. If you are a veteran, or are eligible
for veteran benefits, getting a VA loan is one of the best things that you can do as the interest rates are low
and the program as a whole is fantastic.