Veterans,Administration,Home,L finance, share, loan Veterans Administration Home Loan Advantages


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American armed services personnel – active duty, honorably discharged, retired, or disabled – are eligible for benefits when it comes to home ownership. Put in place after World War II, veterans coming back from war were afforded some help towards having a guaranteed place in the American dream. Since that time, for honorable service in both war time and peace time, most military veterans have been afforded the same assistance.Five Advantages Ease the Way for Veteran Homeowners1. 100% MortgageThe most salient advantage for a veteran who uses his or her VA Loan prerogative is that the property can be secured with 100% financing. The veteran does not have to come up with a down payment. Veterans can essentially enter a home for which they are qualified without putting down a nickel.2. Property or Mortgage InsuranceVA borrowers, even though their property is 100% financed, do not have to pay any property or mortgage insurance fees. The VA loan already covers that. This has two side benefits. This reduces the monthly mortgage payments considerably. It also allows the veteran to qualify for larger loan amounts. All others with less than 20% equity in their homestead must pay the going rate for property or mortgage insurance.3. Credit ScoresVA borrowers are not scrutinized as carefully regarding their personal credit histories. The reason being that the loan is guaranteed by the federal government. The loans are offered just on the capacity of the veteran to repay, not any past credit problems. So, if the veteran has the assets, the salary, the savings, or the bank balances required, the loan will be approved. Also, if they do have somewhat less-than-sterling credit scores, that will not prevent them from owning property of value greater than that for which someone with the same scores would not qualify.4. Interest RatesThough it is not a great advantage, the trade-offs are worth it. VA borrowers are charged a slightly higher interest rate than other conventional borrowers. This can range from 0.25% to 1.00%. This is somewhat higher than a person with a down payment of 20% and credit scores of 740 or higher. Considering the loan to value ratio (L.T.V.), this somewhat higher interest rate is not going to financially cripple any veteran borrower.5. Repeat AccessA very nice aspect of the advantage a VA Loan offers is that it is not just for first time ownership. The rights of a VA Loan can be used for purchasing other homes as the veteran moves up in life or lifestyle requirements change, like kids. The veteran just has to approach the VA and be requalified. This is basically just proving that the previous home was sold or paid off earlier. This requalification will determine the new loan amount for which the veteran is qualified so he or she can plan their next domicile purchase.American DreamFor more information, military personnel who have served honorably should seek guidance on line at VA.usa.gov. You may be able to afford that American dream home after all. Housing lenders and real estate agents can provide information to American veterans as well.

Veterans,Administration,Home,L

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