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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.
If you meet the stipulated conditions (i. E. By the bank and the government), you stand to benefit a lot form these loans compared to the conventional ones. First, the Federal government is your guarantor. Secondly, you do not have to worry about down payment as is the case when applying for other mortgage types. This makes it easier for the military personnel (who are always on the move) to own a home without necessarily having to save first.
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 loans are also flexible in terms of usage. For instance, you could use them to buy a new home (even a manufactured one). Alternatively, you could improve the installations at your place or build a new home using the same loan. Better still, servicemen can buy homes and refurbish with the money.
Additionally, the application process is never a demanding one. Indeed, it is simpler than the regular application. First, you identify an approved lender as well as the house you want to buy. The next process is to get your Certificate of Eligibility of course after signing the Purchase Agreement with a qualified real estate agent.
Provided you have the Certificate of Eligibility and a signed Purchase Agreement, your chance of getting the fund is very high. You simply need to approach the lender and provide them with necessary documents, especially the bank statements. Your veteran home loan will then be processed and closed. During the closing, the lender finds a title firm that will oversee the transfer of the property to you.
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.
If you meet the stipulated conditions (i. E. By the bank and the government), you stand to benefit a lot form these loans compared to the conventional ones. First, the Federal government is your guarantor. Secondly, you do not have to worry about down payment as is the case when applying for other mortgage types. This makes it easier for the military personnel (who are always on the move) to own a home without necessarily having to save first.
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 loans are also flexible in terms of usage. For instance, you could use them to buy a new home (even a manufactured one). Alternatively, you could improve the installations at your place or build a new home using the same loan. Better still, servicemen can buy homes and refurbish with the money.
Additionally, the application process is never a demanding one. Indeed, it is simpler than the regular application. First, you identify an approved lender as well as the house you want to buy. The next process is to get your Certificate of Eligibility of course after signing the Purchase Agreement with a qualified real estate agent.
Provided you have the Certificate of Eligibility and a signed Purchase Agreement, your chance of getting the fund is very high. You simply need to approach the lender and provide them with necessary documents, especially the bank statements. Your veteran home loan will then be processed and closed. During the closing, the lender finds a title firm that will oversee the transfer of the property to you.
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