VA HOME LOANS  
VA HOME LOANS

VA HOME LOANS


In 1944, congress came up with the idea of a VA Loan Guarantee Program as a means of providing the chance to the returning members of the armed forces to realize their dreams of owning their own homes. A surprising 18 million members of the military have become home owners help by VA Home Loans and the Department of Veterans Affairs.

VA HOME LOANS

A VA loan is certainly one of the most affordable and powerful options on the lending market today, as they work in a very unique way. You see, the VA doesn't actually issue the loans, instead it guarantees to repay up to a quarter of every loan which it guarantees, in the unlikely event that the borrower actually defaults on the payments. This means that if you are VA approved you will very often be offered highly competitive rates.

BENEFITS OF VA LOANS

Probably the most significant benefit of VA Loans is that it is one of the very few options available which facilitates the borrower to buy without a deposit. No money down deals are very few and far between these days with 100 per cent financing almost impossible to secure. The requirements aren't quite as strict as many conventional loans either - it has been said that around 80% of borrowers wouldn't have been able to secure a loan any other way - VA Home Loans are certainly doing what they set out to do then aren't they?

  1. Interest rates are extremely competitive, regularly significantly lower than more conventional loan rates
  2. There are no pre payment penalties
  3. Sellers are permitted to pay up to around 6 per cent of any closing costs or concessions
  4. There's a higher debt to income ratio than for other loans (you can borrow more money for your income)

WHO CAN GET A VA LOAN

There are millions of military personnel who are eligible for VA Loans, either veterans or those who are still on active duty. Surprisingly, around 20 per cent of veterans don't know anything about this program, and millions more just imagine that they won't qualify when they actually will if:

  1. They've served a minimum of 181 days out on active duty, or just three months at times of war.
  2. They've spent at least 6 years either in the Reserves or the National Guard.
  3. They are the spouses of anyone who was killed in the line of duty.

Millions of veterans have benefited from VA home loans, but there are still millions more who haven't, even though they could.