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Saturday 25 January 2014

What You Should Know About The Veteran Home Loan

By Judy Sullivan


Finding affordable mortgage is not easy nowadays especially for the military veterans. However, things have been better for the servicemen since the introduction of the veteran home loan program. These are special loans given to those military personnel to help them buy homes.

Due to the uniqueness of the loan, there is a selection criterion used to identify the beneficiaries. For instance, you must have served for 181 days of service days during peacetime or 6 years in the National Guard. The other way to qualify is if you served for 90 successive days during wartime (e. G. Gulf War, 24-month rule, Vietnam, Korean War and World War II).

Now, the above listed conditions are from the government (guarantor) side in order to qualify for the Certificate of Eligibility. However, the lenders do have additional requirements. For example, most of them would look into your Credit history and ensure that you have enough money to repay the loan.

The loans have a lot in store for the applicants. For starters, they are supported by the federal government and require no first payment. The fact that you do not need any deposit to apply for these loans means that even active military personals can get it.

The fact that you do not need mortgage insurance makes these loans even better for those on low budget. Unlike other traditional mortgages, you do not have to pay private monthly mortgage insurance. Additionally, the loans have the best interest rates (i. E. Up to 1% lower) in the market. Other benefits include the use of Basic Allowance for Housing to pay monthly mortgage costs and absence of pre-payment penalty. The latter means you can pay off your loan before it matures without the fear of penalties.

The other advantage of taking the loans includes diversity. For instance, you could use the money to purchases a new home or as well as build one for yourself. The money can also be used to restore installations in homes and also buy manufactured homes. Therefore, after receiving the funds, you can use it for either of these options. All you need to do is to specify the details or need for the money when applying.

Unlike most loans where you have to go through a demanding process, veteran loans are simple to get. From the time you choose a lender to when you negotiate the Purchase agreement, everything looks straight forward. In fact, and as long as you meet the requirements for a certificate of eligibility, you are always granted success.

Once you have acquired the Purchase Agreement and a Certificate of Eligibility, you are cleared to approach the lender. They will in most cases look at your financial history with a keen interest on you banking activities. Provided you meet the lenders requirements, you are granted the veteran home loan and assigned a title company to do closing. During closing, the lending institution (via a title company) manages the transfer of the home to ensure you get your property faster and smoothly.




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