VA Home Loan
Congress created the VA Home loan program in year 1944. The main purpose is to help returning service members to archive the home ownership, cause of their contribution to the country. Since then the Department of Veteran Affairs has helped millions of military member to purchase their homes. The Veteran Affair does not lending directly to veteran, veterans are getting the funds through private lenders and banks. The loan is guaranteed by federal government, that's mean the lenders are protecting by loss even the borrowers defaulting the payment.
The VA loan might be one of the most flexible and powerful lending option in the market.
The federal rates are always at the low side, getting this loan option can save up to thousands if compare to conventional loans.
When asking for lender's quotation, borrower is required to submit the monthly income, property address, list of debt, contact number and etc.
Benefits of VA Loans
1) No down payment required, veteran can borrow up to 100% of the loan.
2) Less stringent underwriting standard and requirements than conventional loans.
3) No need Private Mortgage Insurance (PMI)
4) Competitive interest rate that always lower than conventional loans.
5) Higher allowable debt-to-income ratios than other loans.
6) No prepayment penalties required when taking this loan option.
7) Seller can pay up to 6% of the closing cost and concessions.
Not everyone are eligible for the loan, only the veteran military services servants are entitle enjoying benefits brought from this loan type.
Borrower are encourage to study the whole picture of the loan, knowing the requirements before step in to lender's office.
For more veteran loan information, kindly check out
VA Loan Refinance instead of VA Home Loan
For other home loan, please check out
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