VA Loan Benefits Veterans

These days it is not as easy to get a home mortgage as it was just a few years ago. However, if you are a military veteran, or are a service member on active duty or Reserve duty you may qualify for a home loan through the Veteran’s Administration’s home loan program. A VA loan benefits veterans in many ways.

What Are V Loan Benefits?

Statistics show that more than 25.5 million veterans and military members qualify for the ways that a VA loan benefits veterans. Some of these benefits include:

• No down payment
• Loans up to $417,000 (depending on borrower’s income and other qualifications)
• Flexibility to negotiate interest rates
• No monthly mortgage insurance premiums
• Closing cost limits
• Appraisal of the property to show true value
• 30 year loans with repayment plan choices
• Customary fixed payment loans
• Graduated Payment Mortgages (beginning payments low, rises gradually to level off in 6th year of loan)
• Growing Equity Mortgages-GEMs (payment slowly goes up and all increases go to the principal, which makes it get paid off earlier)
• Home construction is inspected throughout process and one year warranty from builder is required to show home was built in compliance of approved blueprints.
• Mortgages can be assumed if VA approves person taking over the loan.
• No prepay penalties
• VA helps with serving of personal loans and will give veteran financial counseling to help prevent the home’s loss if they encounter any temporary money problems in the future.

These ways that a VA loan benefits veterans can in many cases make the difference in whether or not the person is able to buy a home, so they are extremely valuable if you qualify.

VA Loans and Procedure For Getting One
In order to get a VA loan, a qualifying veteran, active duty member or Reservists needs to get their certificate of eligibility or VA Form 26-188 from the VA, and a VA assigned appraisal for the home they wish to buy. Otherwise, applying for a VA loan is about the same as applying for any other mortgage, you just have to find a lender that is approved to do VA loans. This is pretty simple, as many banks, credit unions and other lenders fall into that category, so it is fairly easy to find out how a VA loan benefits veterans and use the program.

The steps include:

• Apply for the Certificate of Eligibility (VA Form 26-1880) by submitting your DD214 discharge paperwork at your local VA office.
• Find a home you want to buy.
• Get a VA appraisal (lender usually takes care of this).
• Apply for a loan with the VA authorized lender.
• Once approved, close on loan and move into your new home.

A VA guaranteed loan is attractive to a lender because the government backs the loan and guarantees the lender will get paid for the home if the borrower fails to make his payments and gets foreclosed on. This makes it so the VA loan benefits veterans, as well as the lender.

So, if you are a military active duty member in any branch of the service, Reservist, Guardsman, or a veteran who was discharged honorably from any branch of the service then it is likely you qualify for a VA home loan and can get the advantage of how a VA Loan benefits veterans.

Related articles:

• Military Home Loans Through The VA
• Where Can Military Reserves Get a Loan?
• Low Interest Loans Assist Military Families