Take Advantage of VA Home Loans
VA Home Loans is considered a reward, or at least it should be. There are so many loans out there that having one for a specific market is extraordinary and they deserve it.
The VA Home Loans is a special loan available for veterans and since it is special, this article would state straight facts about this kind of home loan and why it works.
VA Home Loans 101
VA Home Loans are private loans guaranteed by the private lenders and guaranteed by the U.S. Department of Veterans Affairs (VA). Created in 1944, the government wanted to lend a helping hand to veterans, those in active duty, as well as their families, in obtaining a loan for their homes or refinance their houses.
VA Loans versus Conventional Loans
VA Loans are unique and stands out for a number of reasons. What makes these loans unique? The following are the differences:
- As to the down payment: VA Loans are one of the last few loans where the borrower is granted to pay a zero percent down payment while more conventional loans are given a grant of a 20 percent down payment.
- As to private mortgage insurance: VA Loans do not require any private mortgage insurance since they are backed up by the government while more conventional loans are required to be insured.
- As to interest rates: VA Loans are more competitive in terms of the rates since the risks involved are not that high. However, it is different with the conventional loans because the risk that banks take are higher.
- As to qualifications: VA Loans only have a specific set of qualifications that once the borrower is in, it is easy to get the loan. More conventional loans are stricter when it comes to loans and qualifying is hard.
VA Loan Eligibility
In order to be eligible for a VA Loan, the borrower must have the following qualifications:
- The borrower should have served 90 consecutive days of active service during wartime. There needs to be a declaration of war to qualify for the period.
- 181 days of active service during peacetime is the next requirement so you would not have to wait for war before you are able to get this benefit.
- The individual also qualifies if he has more than 6 years of service in the National Guard or Reserve. Active service is not the only qualification since those under the reserve force also qualifies.
- The loan also applies for the spouse of a service member who has died in the line of duty. This is a sad fact but it is good that the government is looking out for them.
- The loan also applies to the spouse of those who has served but got a service-related disability.
Why Choose A VA Loan If You Are Qualified?
Other than the difference cited above, if you are qualified to take it, it would be easier to take the VA Loan for the following reasons:
- The borrower may get a Basic Allowance for Housing. This is a benefit that is given to individuals in active service. The allowance could be used to make the monthly payments.
- There is no prepayment penalty where the borrower is required to pay off a penalty for paying before the period of the loan ends.
Take The VA Loan
If you qualify for a loan like this, you better take it. Dealing with banks and all of their requirements is brutal. If you need more help, hire a mortgage professional who can help you and aid your needs. Ask all of your questions before getting a loan so you can be ready for anything.
This is should be a prospective customer's number one call to action, e.g., requesting a quote or perusing your product catalog.