subject: All about VA loans [print this page] All about VA loans All about VA loans
A Veteran's Administration Loan is a type of mortgage loan offered to the veterans of the United States of America and guaranteed by the government body that handles veteran's affairs. The issuance of loan is not directly from the government but from the creditors who tender such kind of loans.
This loan is designed to provide long term fiscal assistance to the American soldiers. Mostly, veterans use it to make homes whenever they want worrying about down payment as there is no such requirement of this loan. But there are diverse uses of VA loans that can help people make their financial life stable. There are number of places mentioned in the terms and conditions of VA loans where eligible candidates can make home. These places are typically small areas or towns and not the metropolitan areas of this country.
There is no need of Private Mortgage Insurance in VA loans and the veterans are allowed 103.15% financing. Besides building a home, a person can utilize this loan to make their homes energy efficient, reconstruct it or refinance an existing home. Now 100.5% refinancing is present over the VA loans, the added 0.5% is the funding fee of this loan. This refinancing option is known as streamline refinance loan and process very quickly and easily.
The maximum amount that a person can borrow on VA loans is $417,000. However, it can be as high as $1,094,625 under specific conditions.
Not all the veterans can apply for this loan program. There is a proper criterion that you have to pass in order to access to this loan. Besides soldiers, this loan is obtainable to spouses of the soldiers (unless they remarry), National Guards and reservists. The retired or discharged personnel should not have the label of dishonesty otherwise they will not be qualified.
The soldiers of military must have served at least three months during wartime or seven months during peacetime and the national guards and reservists must have six years before applying for the VA loans. However, they will have to pay a little bit higher funding fee to the lender than the soldiers. The time limit within which they have to pay off the loan is between fifteen years to thirty years and these loans can also be obtained to make a mobile home. To see whether you are eligible for this loan or not, you must fill a certificate of eligibility and if it gets approved by the government then you can get further with the procedure of this loan.
