Government VA Home Loans
The Department of Veterans Affairs offers many beneficial programs to those individuals who have served in our nation's armed forces. One of the most widely used benefits is the VA Home Loan Guarantee Program. Through the VA Home Loan Guarantee Program eligible veterans can purchase a home and get a much better deal than a traditional lender offers on a mortgage loan.
Get Started With Your VA Loan Request
Some of the important aspects to understand about the government VA home loans include:
- You have to get a Certificate of Eligibility. To prove that you are eligible for the program you will need to get this specific certificate that shows that you served enough time in the military to earn eligibility for the program. A VA-approved lender can help you get a Certificate of Eligibility on-line with your military record information.
- Home loans may be acquired with zero down payment. With the government VA home loans there is no down payment required. Some veterans choose to put a down payment on their home to get the monthly lower or to avoid paying mortgage insurance premiums, but it is not required.
- The government guarantees the loan to the lender. VA home loans have lower interest rates, lower fees, and better terms than loans from traditional lenders because the VA-approved lender servicing the loan has a guarantee from the government that they will get a portion of the loan back in the case the borrower defaults on the loan. This makes it easier for the VA-approved lender to give a great deal on a mortgage loan because it is much less risky thnt a loan that is not guaranteed.
- The government puts a limit on the fees that can be charged on a VA home loan. The VA only allows certain fees for the loan and there are limits for how much the lender can charge for these fees. This means that a person who is purchasing a home with a VA Home Loan Guarantee will have lower fees and closing costs than a person who is getting a traditional loan through a lender.
- The VA will help in the case of default or possible foreclosure on their guaranteed homes. The VA approved lenders will work with the VA and the borrower in order to solve the problem. In the case where a borrower has financial difficulties the lender may offer a specific amount of forgiveness time for the borrower to recover financially or if there have been missed payments the lender may create an affordable payment plan so that the borrower can catch up. This avoids foreclosure and helps the borrower keep their home.
- The VA Home Loan Guarantee Program can be used as many times as a Veteran wants as long as they keep their eligibility requirements. Only one home per veteran can have a VA home loan guarantee on the loan. This means that if you let someone assume a mortgage that is guaranteed by the VA then eligibly in the program will be tied into that mortgage until the new owner sells the home or refinances the mortgage loan.
See a related article: VA Loan Guidelines
VA LOAN SPECIALISTS
We are the online VA loan specialists. It is our goal to ensure that your VA home loan process goes as smoothly as possible. Let us help you get the process started today online, or call us at 800-405-6682.
HAVE A QUESTION?
If you need advice concerning Veteran Home Loans, feel free to contact a VA mortgage specialist online or call 800-405-6682. Specialists can help determine whether a Veteran Home Loan is the best financial decision for you.
