A Lesson for Vets: Use the VA Loan Program
There are some 25 million living veterans in the United States today, nearly all of whom are eligible for a VA home loan. In 2005, however, only 165,000 VA loans were funded. Given all the benefits that a VA-backed home loan can provide, it's important for our Vets to become educated on the topic and to make sure they take advantage of this exciting benefit exclusively offered to them. They've earned it.
What are the benefits of a VA loan? For starters, VA loans require no down payment and often times can come with no money out of pocket all together. They also are not as stringent when it comes to considering the puchasers' income or debt ratios. The only true cost that can come into play is the closing costs, which of course can be negotiated with the seller. VA loans are thus catered to first-time home buyers, but are also beneficial for repeat buyers or veterans wishing to refinance to lower their rate or get cash out.
VA loans are backed by the Department of Veterans Affairs, however, the VA itself does not loan the money out. For 2006, the loan limits for a VA loan was set at $417,000. A no-money-down home loan with a limit that high that is not requiring a high rate second mortgage is unheard of in the conventional world. It's tough to believe that only 165,000 of them were originated in '05. While vets are typically kept up-to-date on their many VA Benefits, which also include health, pay, and educational benefits through the Montgomery GI Bill, it's important that they and their families at least explore the benefits afforded by the VA Home Loan Program when they head out to purchase their first home.
Get Started With Your VA Loan Request
Take the first step toward your VA loan by getting in touch with a VA specialist.
Another nice benefit of a VA loan is the absence of private mortgage insurance (PMI), which most conventional borrowers must pay on loans greater than 80% of the purchase price. Instead, VA loans require a funding fee to cover their risk of guaranteeing the loan. Normally the added cost of the funding fee is still considerably less than the added cost of PMI and is also tax deductible. It is important to note that the funding fee is not required for veterans who were disabled in the line of duty.
So, become one of the millions of veterans to take advantage of this program since its inception way back in the 1940's. Start the process here, or learn more about how to obtain a Certificate of Eligibility to kick start the process.
See a related article: Certificate of Commitment?
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.
