If a man or woman was once listed in any branch of the military or are still listed with the military and are interested in purchasing a home they are eligible for a Veterans Administration Loan or a VA Loan. The veteran will be eligible to buy a home with no money down required. If the person is a veteran they would be able to lower payments on a monthly basis, thus saving a lot of money. Not only are active and retired military possibly eligible for a VA Loan but surviving spouses and others may be able to obtain a VA Loan.
The person seeking a VA Loan can go directly to their financial institution or they can submit a quick form online. They may be matching up with several lenders who approve VA Loans. The quotes are free and well worth the effort to obtain. Basically the veteran will have to put no money down; their payments will be lower, as will the loan rate.
A VA Loan will allow the buyer to finance 100 percent of the value of the home and they will not have to put any money down. This type of loan is a rare loan these days, because financial institutions are requiring more money down for other types of loans. In other words banks and mortgage companies are asking anywhere from 10 percent up to 20 percent money down. Some loans require 5 percent down. These types of down payments are putting people's dreams on hold as they just cannot come up with this large amount of money.
The benefits of having a VA Loan is that private mortgage insurance is not an issue for a VA Loan as it is for other types of loans. The rates on a VA Loan are very competitive. For home buyers to qualify for a VA Loan, qualification is easier because these are government loans. A loan officer who works everyday with VA Loans has far more experience than a regular Loan officer.
These VA Loan officers are well versed in the area of VA Loans. VA Loan officers are expertise in what they do and know the required paperwork and can help the home buyer through the process.
Some financial institutions do not offer VA Loans because in order to offer VA Loans the institution must follow a strict approval process. VA Loans have been help home buyer for over 60 years. The VA will offer loans, cash out loans, and refinance loans with very competitive rates and terms.
Cost of the home that the buyer is interested in can be valued to just over $400,000 with no money down and no private mortgage insurance. Buyers who are eligible for VA Loans will be eligible for low interest rates. No hone appraisal is required. If a veteran is not able to obtain a VA Loan then quite possibly they can obtain an FHA Loan.
VA Loan can be obtained for home loans, loans to refinance a home, they offer a streamline refinance, a refinance loan with cash out option, loans for debt consolidations and are guaranteed at low competitive rates.
In conclusion a home buyer must go to the Veterans website and prequalify for a VA Loan by obtaining a COE or Certificate of Eligibility. If the buyer has already registered all they need to do is log into their account.
The Veterans Administration will determine if the buyer participated in WWII, the Korean War and or the Viet Nam War. At any rate the buyer will have had to serve at least 90 active duty days.