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Tags: finance, va loans, va loan
 Some of the veterans or their widowed spouses are problematic about where to get financing for their “dream” house. A home is an investment and considered a basic need for one’s family. That’s why the US Department of Veterans Affairs home loan program is very popular today. There are thousands of people aspiring to qualify in the program.
The home loan is commonly known as VA loan. It is such a “dream loan” every veteran wants to avail. Benefits of the said program are really great. All those who can qualify in the program will have the privilege to purchase a home through financing. But there are certain qualifications and requirements in order to avail of the said loan.
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Almost all veterans are qualified in the program. To be qualified, you must meet the following criteria: one must be a peacetime veteran or active personnel with a minimum of 180 days of consecutive service; an active veteran, at least 90 consecutive days of service during major conflicts; enlisted veterans who’s service began after 1980; active veterans discharged during WWII with no dishonorable status and officers who’s service began after 1981 with a minimum service of two years.
Moreover, members of the Selected Reserve and National Guard, given they have served for at least six years and were properly discharged in their service are also qualified for the program. Some factors are to be considered though. One must first secure a Certificate of Eligibility from the Department of Veterans Affairs- that’s the first thing to do.
After passing the eligibility test, all the necessary documents must be submitted. What make VA loan popular are the terms itself. Unlike others from private financial institutions, there is no required down payment. A 100% no down payment rule is applicable. That’s so jaw dropping, right? - purchasing a house with no down payment at all.
Buying a house can really be burdensome for some veterans because the down payment involves big amount of money. With the help of VA loan, they will never be problematic about coming up with the cash needed. The government guarantees the loan to lending institutions. In this case, the department and the lending company worked together to make the loan possible to the one’s qualified.
The government made an intervention and brought arrangements with partners (lenders) to provide housing projects for those who want t buy a house. In case of default payments, the Veterans Affairs will protect their investment. There is also no private mortgaged insurance required. That will significantly benefit the veterans. The payment on the insurance can be allotted in paying for other monthly expenses like utilities.
The insurance payment can take years- one can save thousand of dollars for not getting the insurance. Through VA loan, origination fees as well as closing fees lenders usually charged can be limited. The appraisal fees on the other hand are also placed in limit. A VA loan can truly be a great choice for veterans who are considering buying a house.
Superb terms and conditions make this more appealing indeed.
About the author
The author of this article Rick Goldfeller is a successful underground Financial Analyst who has been advising and coaching individuals for many years. Rick recently published a book on how to manage your money and attract Wealth and Financial Freedom. More info on his Finance Planning course is available HERE.
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