Veterans of our armed forces should be honored for their service and one way that the government does that is by offering them their own kind of mortgage. Its called a veteran’s assistance, or VA loan, and it is a good loan that many veterans often overlook having access to.
A VA loan is available to a variety of military members, some family members, and even members of certain organizations. The list of eligible candidates that can apply include:
1. Active duty members of service
2. Members of the National Guard
3. Reservists
4. Veterans- certain guidelines have to be met such as time in service and type of discharge
5. Widows and widowers of veterans, as long as the veteran’s death was directly related to their military service
There are others who can also qualify for a VA loan who are often overlooked:
6. Some veterans of foreign service who served with allied forces during World War II.
7. Certain organizational members, such as officers who work for the National Oceanic and Atmospheric Administration
8. Some service members of the Public Health Service
Where To Apply For a VA Loan
The great thing about VA loans is their availability. They can be obtained from banks, mortgage companies and even a savings and loan. This means that no matter where you bank, chances are good that you have access to this program.
Benefits of a VA Loan
VA loans are not only appealing to buyers, but also to banks, as well. That’s because VA loans are backed by the government, or, in this case, the Veterans Administration. The VA guarantees the loan to the bank in the event that the buyer defaults so that the bank is not forced to write off the debt. The bank where the loan originates gets the interest off of it and the VA gets fees that the buyer is charged up front. But even if someone qualifies for the chance to apply for the loan, the same criteria still exists for qualifying for the loan.
VA loans also require no money down, except for a few incidental fees. When you add this factor to the fact that you can still receive excellent interest rates this makes them extremely appealing.
Another benefit of this loan is that, unlike other popular loan programs, private mortgage insurance is not required. Since the VA guarantees the loan there is no need for third-party insurance requirements.
Not only does the VA offer a fixed rate mortgage, but many people do not realize that there is also an adjustable rate mortgage. In this loan, the interest can be adjusted one percent each year for a total of no more than five percent over the life of the loan. Plus, the VA also offers ways to refinance. And if you have a VA loan and sell the property, you are free to use your benefit again.
