Service to country is one of the most honored traditions in the United States. It is only fair that veterans who have sworn to defend our nation are given some rewards in return for the risks and sacrifices they have undertaken. That is the ethos behind the program of government backed home loans offered by the Veterans Administration.
An Actual Benefit For Service
To be eligible for a Veterans Administration home loan you must have served in the Army, Navy, Air Force, Marines or Coast Guard. Active service members are eligible during and after service and Reservists or National Guard also can qualify.
The ultimate proof of service is your DD214 separation form, which states your record and dates of service and, most importantly, your terms of separation; what type of discharge you received at the end of service. If you are currently serving in the military a VA loan may still be a good option but it will also serve you to investigate other options such as FHA and conventional loans as well.
Much like other government backed programs such as FHA the VA home loan program allows a low down payment. In fact you may be able to forgo the down payment completely and, if they agree, sellers can pay many of your costs.
VA Loans Have Exceptional Terms
Your repayments will be lower due to no insurance premium requirement. Private lenders provide the loans and the VA provides a guaranty. The guaranty enables lenders to offer very favorable terms. Loans can be for the purchase of a home or refinancing to get better terms or to cash-out to pay off additional debts.
The VA also offers other benefits to qualifying homeowners such as grants to adapt your home for special needs. You will need to go through the qualifying process of the VA’s eBenefits Gateway and obtain a certificate of eligibility. You can do this part yourself or have your lender fill it out as part of your application process.
Much of what make this program work is the participation of lending institutions and you will need to work with one that handles VA lending. You will pay a VA Loan funding fee as a percentage basis. However you will not have to make a down payment or pay monthly mortgage insurance. It is up to the lender to set the interest rate, points and closing costs. These rates are not uniform so you might get a better deal by shopping around.
If You Are A Vet It Is Worth Checking Out
VA backed home loans are a great way for the nation to thank veterans and for deserving vets to establish homeownership more affordably. If you think that you might be eligible then you owe it to yourself to ask your real estate professional how you can initiate the process. And thank you for your service.