subject: VA Loans - Great Facility For The Veterans [print this page] VA Loans - Great Facility For The Veterans
VA loan is also known as Veterans Administration loan. It is established for the veterans of the United States of America who provide services to the nation in military. This loan is designed by the United States Department of Veterans Affairs and handled by them. Besides providing various other facilities to the veterans of this country, this loan helps them and their families to have the ownership of a house. VA loan is a type of mortgage loan, however it is less complication and far better than other types of mortgage loans. To obtain this loan, a person does not have to contact the Department of VA because it does not grant loans directly. The person has to contact the lenders and banks that approve the VA loans.
There are so many veterans who are unaware of this opportunity provided to them to own a house. 27 millions veterans can apply for this loan. VA loan cannot be just used to purchase a house; it can also be used for various other reasons. For example; 100% refinancing option is available, this loan can be used to expand or improve an existing loan, it can be used to purchase other mortgages etc. In other words, a VA loan is not available only for the first time home buyers. However, people cannot buy investment properties through this loan and the amount of money that can be borrowed on this loan is up to $417,000. In some states of America this amount may vary.
In the VA loan program the borrower does not make any down payment instead the VA department makes a deal with the lender that if the borrowers goes default then the department will cover quarter or half of the loan. The lenders then feel protected because they are convinced that rather than receiving heavy fees they have a guarantee from the government. Moreover, the interest charged on these loans is also very low as compare to the other mortgage loans leading to lower amounts of payment each month. This way the veteran can save thousands of dollars very year in their accounts.
The duration of payment of this loan is between 15 to 30 months. Retired and discharged personnel of military can also apply for this loan. However, the discharged person is not released due to dishonesty and has served the military for minimum three months. To get more information on the VA loans you must consult a VA loan specialist who will tell you whether you are eligible for this loan for not.
