In
1944, the United States government started VA home loan program to
help military persons and veterans, so they could purchase their own
home at $0 down and low-interest rates.
From recent years, the government has backed over 22 million VA loans helping veterans, military persons and their spouses buy a home of their dreams with easy refinancing terms.
To obtain the benefits of VA, it is essential for eligible candidates to know the facilities VA is providing. For your convenience, some of them are discussed as under:
Government provides guaranty
VA loans are backed by the U.S. Department of Veterans Affairs (VA) and provided by private financial companies and lenders. It encourages lenders to provide this loan on easy terms.
No mortgage insurance
Other programs require you to pay mortgage insurance as a monthly fee if you do not put a minimum twenty percent down. But, in VA, there are no such obligations present.
Bankruptcy and foreclosure are not the barriers
Persons can utilize the benefits of VA despite having a bankruptcy or foreclosure history. Even borrowers with a VA foreclosure record can also secure this loan.
No pre-payment penalties
A person can make extra payments before a fixed time period of a loan without the fear of pre-payment penalties. It also helps you save interest rates on monthly basis.
No down payment
Where other mortgages require a minimum twenty percent down payment to receive a home loan, VA is available with 0% down for eligible candidates.
Low-Interest
rates
VA allows you to get this loan at more competitive interest rates in comparison to other mortgages. This is because federal government backs VA loan.
Made for various purposes
A VA loan comes with fixed or variable rates. It can be used to purchase a new home, duplex, condo, or for other types of properties. You can also use it to renovate a home or refinance an existing loan.
A mandatory fee
VA has fixed a mandatory fee while purchasing and refinancing a loan with a purpose to keep the program moving on. But, it has not essential for those who have a service-connected disability.
VA loan is reusable
VA home loans can be reused again and again. You can also obtain another one even if you have already one or lost it due to foreclosure.
Designed for specific types of homes
It is mainly designed for some specific types of homes such as modular housing, multi-unit properties, and nuclear family houses etc.
Only for primary residency
Do not use this loan scheme for investment or earning purposes. Although you can use it to purchase duplex or multi-unit properties, a house should be used as your primary residence.
Easy to qualify
VA loan program has flexible terms and guidelines in comparison to other loans. This is because VA guarantees it and makes it easy for you.
Qualification for VA
The federal government has set a qualification standard to get VA loan. To become eligible for this, you are required to meet one of the following conditions:
- Ninety consecutive days of service in wartime. Or
- One hundred eighty-one days of service in peacetime. Or
- Over six years of work experience in the National Guard or Reserves. Or
- You are a spouse of the service member died on duty or due to service-associated disability.
Credit
and Income Eligibility
The Department of Veterans Affairs has not fixed any minimum credit score requirements to get a VA loan. However, some mortgage loan lenders in Colorado seek at least 620 scores for this purpose.
With the intention of protecting home aspirants from financial crises, the VA ensures they could afford a mortgage amount easily. For this, they estimate the ratio of your gross monthly income and total monthly debt.
Conclusion
VA
benefits such as no insurance, low credit scores, minimum interest
rates, no down payment, federal government guarantee, are hard to
find in any other home loan scheme. It is also simple and easy to
apply than other loan schemes. Knowing these benefits, If you think
you are eligible for this mortgage, you can apply it with the help of
some reputed VA home loan lenders in Idaho such
as Quick VA Loans. They have long years of experience in this field
and also have good contacts with the right financial organizations.
Their expert team works with you closely knowing your loan
requirements and goals. So, you can get a good deal at the end to
fulfill your dream of becoming a homeowner.
