Applying For A Veteran Home Loan

By Kelly Wood


Many people prefer the veteran home loan option as opposed to the others because of its benefits. This is the type of loan whereby one is given some amount, according to individual wants, and in case of default then quarter of the amount had already been guaranteed. Veterans are therefore advantaged than other people when it comes to getting such kinds of loans.

The establishment of the scheme dates back to 1994 when a guarantee program was set up to help returning service members own homes. Since then, the program has enjoyed much success over the years. Records show that the program has now been used on about twenty million soldiers. It has therefore helped a huge number of service members achieve their dreams.

The loan is still viewed as an ultimate preference because it does not necessarily require money in making purchases. They are also governed by flexible regulations that do not portray much strictness. Unlike other loaning options, they do not require any form of private mortgage cover. This therefore implies that the amount of interest chargeable on repayment is relatively low. Most importantly, there is no prepayment charges imposed on borrowers.

A research conducted in 2004 shows that nearly 20 percent of veterans are still not aware of the qualifications for a VA loan. The loans cover veterans who actively participated in their duties, soldiers who have battled for more than two months, and service members. The coverage also extends to individuals who have actively participated in their duties for more than 180 days, those who have served the Reserves or National Guards for more than six years, and spouses who lost their partners through state wars. However, it should be noted that eligibility is not a guarantee of getting the money.

The lending procedure requires the borrower to pledge for an eligibility certificate to show his or her membership. Certificate forms are usually readily available on online websites where they can be downloaded. Similarly, the Veteran Association members can assist the veterans through the entire process.

The loans can be put into several uses that are aimed at improving the living standards of the veterans. They can be used for the purchase or construction of a new home or simply repairing the existing one. Financially, the loans can improve the financial conditions of a veteran through savings. This also involves using the VA finance to make energy upgrades through Energy Efficient Mortgage.

VA loans help a borrower to acquire private farm residence through making purchases. This is mainly because the loans are only designed for domestic and private usage, which forbids commercial investment. The loaning agents do not encourage any form of purchase or ownership of investment property.

The veteran home loan program is only geared towards helping veterans purchase private properties and owning homes. Similarly, VA lenders also operate within loaning limits which do not give much room for investments. The limits are mainly imposed through the guidelines of federal mortgage agencies, Freddie Mac and Fannie Mae.




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