A Lesson for Vets: Use the VA Loan Program
There are some 25 million Veterans living 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 do not require a down payment and often times can be obtained with absolutely no money out of pocket. VA Loans are also not as stringent when it comes to considering the purchaser's income or debt ratios. Find out more information and compare VA Loans to conventional loans.
The only true costs that can come into play with a VA Loan are the closing costs which, of course, can be negotiated with the seller. VA Loans catered to first-time home buyers, but are also beneficial for repeat buyers or Veterans wishing to refinance to a lower rate or take 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 $729,000. A no-money-down home loan with a limit that high that does not require a high rate second mortgage is almost unheard of in the world of conventional loans. Because VA Loans offer so many great benefits, it's tough to believe that only 165,000 were originated in 2005. It's important that Veterans and their families 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
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 the VA's 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 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 online today, 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.
