subject: Who Can Get A VA Loan [print this page] Who Can Get A VA Loan Who Can Get A VA Loan
VA loans offer great opportunity for the veterans to build a home for themselves. Not only veterans can construct new homes with this loan but they can also use for refinancing of previous mortgages. A VA loan can also be used to upgrade an existing home. However, VA loans cannot be used to purchase any investment property.
The United States Department of Veterans Affairs has helped more than 18 million veterans to achieve a home of their own. This department does not provide the money of the loans itself but it makes a deal with the lender who approves to provide the loan. In this deal, it convinces the lender that if the borrower goes default then it will cover quarter of the cost of the loan. And in return the lender will not necessitate any down payment. Hence, the veteran is able to get a home without paying any large amount of money as down payment to the lender. To acquire this loan, the person do not have to contact the VA department but it has to find out those lenders that grant these loans. This is the feature that makes this loan different from other mortgage loans and a lot easier. A veteran's loan has more beneficial terms than any other housing loans and it is also less complicated.
It is not important that to get qualified for a VA loan you need to have a very good credit score. If you have made timely payment for the past twelve months then you are likely to get approved by the VA loans providing lenders. If you are not a veteran who has served the military for three months or if you are discharged from the military then you cannot apply for this loan. Spouses of those veterans who died or became handicapped in the middle of giving services to the nation are also applicable for VA loans. Besides these people, the reservists and the members of national guards are also eligible.
The interest rate charged on these loans is comparatively lower, making the monthly payments lower. The money that can be borrowed on these loans is up to $417,000 and the time duration in which the veteran is supposed to pay back the loan is between 15 to 30 years. To acquire this loan the first step is to fill the Certificate of Eligibility, which is available on the websites of VA loans. Then before you finalize your deal with the lender, you should discuss it with the VA loan specialist who will guide you how to gain maximum benefits through this loan.
