subject: Are You Qualified To Get A VA Loan? [print this page] Are You Qualified To Get A VA Loan? Are You Qualified To Get A VA Loan?
A Veterans Administration loan is a type of mortgage loan that helps veterans builds a home. It is a reward given to the veterans of America by the US Department that handles Veteran Affairs. In VA loan this department gives guarantee to the lender so that they approve these loans.
The VA loan program was designed in 1944 and is considered the best benefit provided to the veterans. The government gives a guarantee to the lender that if the borrower is unable to pay back the money then it will pay quarter of the loan to him. This way the lender feels protected that he will not face loss and continue the process of a VA loan. On the other hand, the borrower does not have to pay any down payment to the lender because he is provided with the word of government.
More than 27 million can apply for these loans. This loan is only available to the veterans and if you want to acquire this loan then you will have to become a veteran first. Even the veterans that are eligible must have served 181 days incessantly throughout peacetime and 90 days throughout wartime. Retired and discharged personnel can also apply for this loan but if they are discharged due to the act of deceit then they will not be qualified. National guards and reservists who have minimum six years experience can also apply for this loan.
Refinancing is also obtainable on VA loans and it is not restricted to first time home buyers. Veterans can also use it to perk up their homes and make changes in it. Investment properties cannot be bought with this loan. The interest rate charged on these loans is low as compare to other housing loans. That makes the monthly payments low. Moreover, there is no need of Private Mortgage Insurance in these loans.
The first step to find if you are eligible for VA loan is to fill the Certificate of Eligibility. Then you have to contact the lenders and banks that offer VA loans. Make comparisons between different quotes and then choose the best one for you. To gain more information of VA loans you should consult a Veteran loan specialist who will educate you properly about this loan system. These loans are a great opportunity for the veterans who come back home, wanting to settle in their house and with their families.
