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A veteran home loan is designed to guarantee veterans certain options. Most loans of this type are used to purchase existing homes, but refinancing existing mortgages or constructing new dwellings may also be possible under this kind of arrangement. In certain cases, a VA loan can be taken out to increase the energy efficiency of a home before or after it is purchased.
The VA, which is the abbreviation for the Department of Veterans Affairs, has helped more than 15 million veterans to buy homes. The Department itself does not lend the money to the buyer, but it backs the loan, which provides motivation to the lender to lower fees and interest rates for those with a military background.
Limitations associated with the program focus on the status of the person's active-duty, and the total amount being borrowed. Experts report that the number of loans guaranteed by the Department of Veterans Affairs has substantially helped the mortgage industry. They also claim that arrangements of this type are beneficial for both lending institutions and consumers.
Such loans were designed to compensate women and men for serving their country. However, the rates and terms associated with such arrangements are not always better than those found with traditional loans. For instance, a borrower who is a prequalified buyer may be able to get the same or similar rates on his or her own, provided the person has a positive credit history. On the other hand, veterans with few or no assets will find the terms and conditions of VA loans very beneficial. In certain instances, such arrangements are the only way a veteran can purchase a primary residence.
The buyer's military service is the primary requirement necessary to qualify for such an arrangement. Other qualifications include the time and nature of his or her service. To qualify, one must also have served a minimum of 180 continuous days when the country was at peace, or participated in active duty for 90 days during wartime. In the majority of instances, if an individual was discharged dishonorably from any service branch, such loans will not be option.
To obtain VA loans, an individual must first acquire an eligibility certificate. The latter can be obtained by filling out the appropriate application at the Department of Veterans Affairs. As soon as such paperwork is received, the person can sign mortgage papers with a private seller or realtor. The VA must typically conduct an appraisal on the house, even though the primary lending institution will likely complete their own appraisal as well.
The United States Department of Veterans Affairs has long guaranteed home loans made to veterans for many years. On October 10, 2008, then-President George W. Bush signed the Veterans' Benefits Improvement Act. The latter of which updated the program so that it could meet the realities of the housing market collapse taking place at that time.
Those who think they are eligible for a veteran home loan will find that pursuing such an arrangement is beneficial. This is definitely the case if the individual has no other way to obtain a primary residence. Those who plan to apply for a loan of this type should consider discussing their intentions with a real estate agent or financial planner to acquire assistance with the process.
The VA, which is the abbreviation for the Department of Veterans Affairs, has helped more than 15 million veterans to buy homes. The Department itself does not lend the money to the buyer, but it backs the loan, which provides motivation to the lender to lower fees and interest rates for those with a military background.
Limitations associated with the program focus on the status of the person's active-duty, and the total amount being borrowed. Experts report that the number of loans guaranteed by the Department of Veterans Affairs has substantially helped the mortgage industry. They also claim that arrangements of this type are beneficial for both lending institutions and consumers.
Such loans were designed to compensate women and men for serving their country. However, the rates and terms associated with such arrangements are not always better than those found with traditional loans. For instance, a borrower who is a prequalified buyer may be able to get the same or similar rates on his or her own, provided the person has a positive credit history. On the other hand, veterans with few or no assets will find the terms and conditions of VA loans very beneficial. In certain instances, such arrangements are the only way a veteran can purchase a primary residence.
The buyer's military service is the primary requirement necessary to qualify for such an arrangement. Other qualifications include the time and nature of his or her service. To qualify, one must also have served a minimum of 180 continuous days when the country was at peace, or participated in active duty for 90 days during wartime. In the majority of instances, if an individual was discharged dishonorably from any service branch, such loans will not be option.
To obtain VA loans, an individual must first acquire an eligibility certificate. The latter can be obtained by filling out the appropriate application at the Department of Veterans Affairs. As soon as such paperwork is received, the person can sign mortgage papers with a private seller or realtor. The VA must typically conduct an appraisal on the house, even though the primary lending institution will likely complete their own appraisal as well.
The United States Department of Veterans Affairs has long guaranteed home loans made to veterans for many years. On October 10, 2008, then-President George W. Bush signed the Veterans' Benefits Improvement Act. The latter of which updated the program so that it could meet the realities of the housing market collapse taking place at that time.
Those who think they are eligible for a veteran home loan will find that pursuing such an arrangement is beneficial. This is definitely the case if the individual has no other way to obtain a primary residence. Those who plan to apply for a loan of this type should consider discussing their intentions with a real estate agent or financial planner to acquire assistance with the process.
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