| VA Loans | | | | Getting the VA loans is completely |
| If you are on active duty ( there are | | | | devoid of hassles and legalities, which |
| time constraints) or are retired | | | | makes the loan more accessible. |
| military, the chances are good that you | | | | VA loans are generally the best choice |
| qualify for a VA loan. There are | | | | for veterans who are planning to |
| different types of housing loans, such | | | | purchase a new home or refinance an |
| as Conventional, FHA (Federal Housing | | | | existing home mortgage. More than 29 |
| Administration) and VA loans. It's a | | | | million veterans and service personnel |
| good idea to research the different | | | | are eligible to receive VA loans. You |
| types of loans before you dive in. The | | | | may also want to visit the Veterans |
| basic aim of VA loans is to help | | | | Administration web site Veterans can |
| veterans finance buying a house. The | | | | apply for pre-qualification online or |
| largest benefit of VA loans is you don't | | | | check their eligibility for VA loans |
| need a down payment, and very little | | | | within minutes. VA FINANCING - A GOOD |
| cash to move in. A more complete | | | | DEAL FOR VETERANS. Department of |
| reference for processing VA loans is the | | | | Veterans Affairs home loans -- VA loans |
| Lender's Handbook, VA Pamphlet 26-7, | | | | for short -- are a popular option with |
| available on the Internet at www. The | | | | home buyers. The Veterans Benefits Act, |
| biggest advantage of using VA loans is | | | | signed recently, has raised the VA loan |
| that borrowers can finance the purchase | | | | limits to allow more Veterans and |
| of a home with no money down. This can | | | | individuals on Active Duty to qualify |
| be a great help when you consider all | | | | for VA Loans. Veterans are allowed to |
| the expenses that are associated with | | | | refinance their existing mortgages from |
| buying and moving into a new home. One | | | | conventional or FHA loans to VA loans. |
| of the most common myths about VA loans | | | | But if you're one of those veterans who |
| is that once you use your VA loan you | | | | thought they could never be approved for |
| can never use it again. This is simply | | | | a loan on a home, VA loans can make it |
| not true. If you have an existing VA | | | | happen where nothing else could. This |
| loan, you must clear it to make yourself | | | | program helps veterans obtain mortgages |
| eligible for another VA loan. This is a | | | | by protecting the lender against loss. |
| common practice when you sell you house | | | | Check with your local Veterans |
| make sure that you clear the loan so | | | | Administration for details or go to VA |
| that you are eligible for the next one. | | | | Loan ( |
| Another perk to VA Loans is the reduced | | | | To summarize, The basic aim of VA loans |
| closing costs, origination fees, and | | | | is to help veterans finance buying a |
| appraisal fees that lenders are allowed | | | | house. On the other side of the coin, |
| to charge. When an appraisal is done on | | | | one potential downside to a VA loans is |
| a property, the lenders are bound by | | | | the guarantee amount. The guaranteed |
| that amount. If for some reason you | | | | amount is higher than ever so the |
| agree to pay more than the appraised | | | | guaranteed amount should not be a |
| amount, the additional money would have | | | | problem. The largest benefit of VA loans |
| to come out of your own pocket. Why | | | | is you don't need a down payment, and |
| would anyone want to pay more than the | | | | very little cash to move in. The main |
| appraised amount? An example might be | | | | source of information about processing |
| something like this. You are talking to | | | | VA loans is contained in VA Pamphlet |
| a seller and have agreed on a price | | | | 26-7, VA Lender's Handbook. One of the |
| pending a VA appraisal. The appraisal | | | | most common myths about VA loans is that |
| comes in five thousand below the agreed | | | | once you use your VA loan you can never |
| upon price. You still want the property | | | | use it again. As we said earlier, this |
| and they want to sell it to you but not | | | | is not true, you just have to clear the |
| at the VA price. You compromise and | | | | previous one. Another perk to VA loans |
| agree to split the difference and pay | | | | is the reduced closing costs, |
| them an additional twenty-five hundred | | | | origination fees, and appraisal fees |
| dollars. That money would come out of | | | | that lenders are allowed to charge. The |
| you pocket. The only catch with VA loans | | | | funding fee for VA loans is waived for |
| is that you must be a military veteran | | | | veterans who have a service. Connected |
| to qualify. While, one of the biggest | | | | disability of 10 % or more. Getting the |
| selling points for VA loans is that | | | | VA Loan is completely devoid of hassles |
| there are usually no down payments | | | | and legalities, which makes the loan |
| required. The funding fee for VA loans | | | | more accessible. If you are a veteran, |
| is waived for veterans who have a | | | | this is one of the best deals there is. |
| service connected disability of 10 % or | | | | This and the GI Bill for education, but |
| more.. One of the greatest benefits of | | | | that's a different story for another |
| VA loans is the low interest rates. | | | | day. |