Essential Facts About Applying For A Veteran Home Loan
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 VA, which is the abbreviation for the Department of Veterans Affairs, has helped more than 15 million veterans to buy homes. The Department itself does not lend the money to the buyer, but it backs the loan, which provides motivation to the lender to lower fees and interest rates for those with a military background.
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 primary eligibility for such an arrangement is the borrower's service in the military. Other terms of qualifications vary with regard to the nature and time of his or her service. A veteran must have served at least 180 continuous days during peace, or 90 days of active duty during wartime in order to qualify. In most cases, if a person was dishonorably discharged from any branch of the service, he or she will not qualify for such loans.
To obtain a VA loan, an individual must first acquire a certificate of eligibility. This can be obtained at the VA department, and after it is received, the person can sign a sales agreement for home with a realtor or private seller. An appraisal is usually completed by the VA, even though the lending institution will also conduct an appraisal.
For many years, the US Department of Veterans Affairs has backed loans for those who have served in any branch of the military. In 2008, on October 10th, the Veterans' Benefits Improvement Act was signed by then-president George W. Bush. This act updated the terms and conditions of the program in order to offset repercussions felt by veterans from the housing market collapse that took place that year.
Those who think they are eligible for a veteran home loan will find that pursuing such an arrangement is beneficial. This is definitely the case if the individual has no other way to obtain a primary residence. Those who plan to apply for a loan of this type should consider discussing their intentions with a real estate agent or financial planner to acquire assistance with the process.
The VA, which is the abbreviation for the Department of Veterans Affairs, has helped more than 15 million veterans to buy homes. The Department itself does not lend the money to the buyer, but it backs the loan, which provides motivation to the lender to lower fees and interest rates for those with a military background.
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 primary eligibility for such an arrangement is the borrower's service in the military. Other terms of qualifications vary with regard to the nature and time of his or her service. A veteran must have served at least 180 continuous days during peace, or 90 days of active duty during wartime in order to qualify. In most cases, if a person was dishonorably discharged from any branch of the service, he or she will not qualify for such loans.
To obtain a VA loan, an individual must first acquire a certificate of eligibility. This can be obtained at the VA department, and after it is received, the person can sign a sales agreement for home with a realtor or private seller. An appraisal is usually completed by the VA, even though the lending institution will also conduct an appraisal.
For many years, the US Department of Veterans Affairs has backed loans for those who have served in any branch of the military. In 2008, on October 10th, the Veterans' Benefits Improvement Act was signed by then-president George W. Bush. This act updated the terms and conditions of the program in order to offset repercussions felt by veterans from the housing market collapse that took place that year.
Those who think they are eligible for a veteran home loan will find that pursuing such an arrangement is beneficial. This is definitely the case if the individual has no other way to obtain a primary residence. Those who plan to apply for a loan of this type should consider discussing their intentions with a real estate agent or financial planner to acquire assistance with the process.
About the Author:
Read more about Essential Facts About Applying For A Veteran Home Loan visiting our website.
posted by Vittoria @ September 19, 2013
0 Comments
0 Comments:
Post a Comment
Subscribe to Post Comments [Atom]
<< Home