Va Home Loans

Written by Beth Hrusch
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VA home loans are available to former and current members of the Armed Forces. Proof of military service is required in order to obtain a VA loan, and the specific eligibility requirements can be explained by a lender who is experienced in these types of loans. Not all lenders participate in the VA home loan program, so not all of them will be familiar with the details. Those who are familiar can help the applicant get an automated certificate of eligibility on the spot.

VA Loans and Their Terms

A VA loan is similar to an FHA loan in that it is insured by the Federal government. The borrower does not need to put money down in order to purchase a home with this loan. Normally, this would be a problem for the lender, as they want the down money in order to secure their interest in the loan. With a VA loan, however, since the government guarantees the loan banks or mortgage companies can enter into the transaction without risk.

A veteran or active member of the military can get a basic entitlement of $36,000, and a maximum of four times that amount without a down payment requirement. Of course, even when eligibility for this loan is established, the lender may still turn down a loan applicant based on credit or income considerations. The VA loan certification does not guarantee that the borrower will meet the bank's lending requirements. Being able to qualify for the VA loan, however, does give the applicant an advantage in getting a low- or no-money down loan for the purchase of a home.

The VA loan is a program that was designed to make the purchase of a home easier for those who have served their country. It eliminates the down payment requirement that most conventional loans carry, and in doing so encourages veterans to invest in a home, build equity and help secure their financial future. A lender qualified to handle these loans can assist in obtaining the necessary forms for starting this process.


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