The VA Home Loan was designed to help veterans own houses without having to make any down payment. It was formulated in the year 1944 by the US Department of Veteran Affairs (VA) and can be issued by authorized lenders.
Who is Eligible
VA house loans can be availed by anybody who satisfies any one of the following criteria.
* Been in active duty for at least 181 days in peacetime.
* Been in active duty for at least 90 days during war time.
* Served a minimum of six years in the Reserves or National Guard.
* Is a spouse of a service member killed in the line of duty? It is important to note here that this condition stands only if the spouse has not remarried.
If you fall within any of the above-mentioned situations, you can go ahead and apply for a VA home loan. All you need to do is to get in touch with a qualified and authorized VA lender and you will be guided thereon.
Types of VA Home Loans
A VA lender, when helping you out with your requirements, will be sure to inform you that under the VA loan program various types of VA loans are available. Depending upon your needs and resources, you are free to make your choice.
* The VA Home Loan is ideal for first-time home buyers. The purchase can be of preexisting homes or on manufactured ones. Purchasing land is also an option here. As there is no down payment in most cases, the entire amount can be financed. Traditionally, these loans are 30-year loans with a fixed interest rate.
* A Refinancing VA home loan gives the facility of refinancing an existing loan into another VA loan. For example, if a VA lender offers a lower interest rate, the borrower can get his existing loan refinanced into the lower interest rate loan.
* In some cases, the VA Streamlines Loan surfaces as a good option. Compared to other loans, this particular one requires less documentation and is usually selected to reduce interest rates. Following this format, you will not be able to draw cash out of a property.
* The VA Construction Loan is availed by those wishing to get their own houses built. Under this program, the builder must agree to carry on all costs of construction. Once completed, the house must go through all VA inspections and appraisals.
* The VA Hybrid ARM (Adjustable Rate Mortgage) offers an initial fixed rate of interest. This period can be anything between three and five years. This program carries a five percent rate cap that lasts over the life of the loan and may fluctuate from time to time.
Benefits of VA Home Loans
VA loans were designed for veterans who have served the nation and therefore the clauses of this loan have greater benefits when compared to other loans.
* They have a faster processing period settling matters in a speedy manner.
* VA home loans give the investors significant saving opportunities.
* These loans guarantee loan repayment if a lender is unable to fulfill his or her obligations.
* The discounted fees are especially designed for veterans; this can range between half a percent to 3.3 percent.
* These loans are free from prepayment penalty.
A VA Home Loan is especially designed for veterans which carries with it the feeling of being "proud to serve those who have served" as put by Marc Anenberg of Broadview Mortgage, California.
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In order to facilitate homeownership for veterans, the VA Home Loan was brought into effect and is guaranteed by the US Department of Veteran Affairs.
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