A VA loan is basically a mortgage loan within the United States secured by the United States Department of Veterans Affairs, sometimes with a VA Guaranteed Loan Guarantee. It is a much-anticipated move following President Obama’s plan to stimulate the economy through home sales. There is a general consensus that VA loans are a good option for veterans who are struggling with their mortgage payments. The VA has approved about nine out of every ten mortgage applications filed by veterans. Get Your Best VA Loans in Las Vegas Today!
What is it that makes these loans so attractive for veterans? First, VA loans do not need good credit; they don’t even look at your credit rating. This is really a big bonus because it means that anyone regardless of financial difficulties can apply and get approved. Secondly, it does not have occupancy requirements. The only requirement is that you must meet the specific eligibility requirements which are very easy to fulfill.
So what does it take to qualify for VA loans? The basic criteria required of any mortgage loan, including a VA loan, is that you are an American veteran who is living in the United States. You must also meet the minimal property requirements as defined by the VA. This means that you must own your home or have equity held in it as of the date of application. The minimum property requirements are determined by the market value of your home plus the balance of the loan as approved by the lender.
As with conventional loans, there are two types of VA loans. There are the direct VA loan and the non-direct VA loan. The direct type of VA loans require the borrower to provide funds for the complete purchase price of the property, including any reasonable financing fee. The non-direct VA loans do not require the borrower to provide funds. The lender may require a down payment or it may require you to pay a funding fee known as a VA refinancing loan premium.
In order to get VA loans for veterans and their spouses, it is important to remember that this is not like a conventional loan. VA loans are specifically designed for veterans and their spouses. They are not based on credit history, income level, or employment history. In order to qualify for a VA mortgage option, a veteran or his/her spouse must be 18 years old. Also, only active-duty personnel who are members of the Selected Reserve and members of the Reserve who are honorably discharged must apply.
The reason why these loans are better than conventional mortgages is because you do not pay any interest during the period between purchasing the property and the time you sell it. You will have to pay interest at the end of the loan term, which will be determined by a VA mortgage calculator or by HUD. Usually, the interest rates are fixed for the life of the loan, although this is not always the case. If the lender does choose to change the interest rates, it is often done so at the start of the loan tenure to minimize their risk.
Another major benefit of acquiring VA loans for the elderly and their spouses is the availability of VA and FHA loans. Although both these programs are popular, not all borrowers qualify for the programs. Typically, borrowers must meet a strict set of requirements, including home ownership, decent employment, and an acceptable credit score. These requirements are intended to prevent the federal government from discriminating against prospective borrowers. Additionally, borrowers must meet all other applicable criteria for obtaining conventional mortgages.
Finally, there are many benefits associated with VA and FHA loans for veterans and their spouses. First, there are no payments, interest, or fees associated with these types of loans. Also, you do not have to worry about the possibility of losing your house to foreclosure. Finally, you are not required to use the equity in your home when applying for either one of these loans. In fact, you can obtain both VA and FHA loans without using any equity at all. Although the interest rates for VA and FHA loans are slightly higher than those for conventional loans, they offer significantly better financing terms.