VA home loans are a unique way of extending support to the US war veterans, who committed their lives in safeguarding the interests of the country. Therefore, understanding these loans is beneficial.
Objective:
VA housing loan program provides financial assistance to veterans so that they can purchase home at a favorable rate of interest and convenient loan terms.
Eligibility:
Armed personnel, who served the country's cause during World War II, Korean Conflict, Vietnam War, Persian Gulf War and Afghanistan War, are eligible. Also personnel who have done peacetime service for 181 continuous days are eligible. Even members with 6 years of service in the Reserves or National Guards can apply. Spouses of war personnel, who lost their lives during wartime and those captured as Prisoners of War, are also eligible for this benefit.
Arranging a Veteran's Guaranteed Loan:
The foremost step is to locate a suitable property in a safe locality. Next, the veteran has to go to a lender and apply for a home loan. VA guaranteed loans are provided by private lenders that include banks, mortgage companies and savings and loan associations. While submitting the loan application, the veteran also needs to present papers of discharge from the service and a Certificate of Eligibility. The property is then appraised and the reasonable value of the property is determined. Depending on this, the loan application is approved and the loan amount is provided to the veteran.
Role of VA:
Loans provided by the VA are fixed-interest mortgage loan that do not require any down payment. These loans are provided to all eligible veterans, regardless of their age, color, race, sex, religion, familial status, nationality or handicap. No prepayment penalties and long amortization terms are another advantage of these loans. Houses provided under VA housing loan programs are duly inspected at the time of construction and require a warranty from the builder.
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VA Home Loans
