VA Home Loans
Not everyone are eligible for VA Home Loans. Only the people who meet the following requirements is qualify.
1) Military member who served more than 181 days or 3 months during war time.
2) Spouses of those killed in the lines of duty.
3) For who spent at least 6 years in National Guard or Reserves.
Veterans are not only can get 100% fund from the loan, there is no down payment required from borrower also. There are 2 main benefits substantially lower the monthly payments. Which are no PMI (PMI is an added insurance for conventional loan when borrowing more than 80%). The other is the interest rate lower from 0.5%-1% from the conventional loan.
VA loan is primary use for purchase home, but these loans help veterans improving their home and save money from refinancing. Below are the ways veterans use VA loan :-
1) Refinance existing VA-guaranteed or direct loan in order to lower the current interest rate
2) Renovate, improve or repair home owned by veteran.
3) Buying a farm residence by veteran.
4) Refinance to obtain a sum of money for various uses such medical bills, house expansion, refurbishment, buying a car or etc.
5) Make energy efficient improvements through an Energy Efficient Mortgage in conjunction with a purchase or refinance
There is a restriction at VA loan, it's objective is to help veteran to archive a dream as homeowner. But not to use this loan to investment. Thus, veteran only can apply the 2nd mortgage after they pay the loan in full. This is one of the restriction of the loan, but some of them will seek for other choices such cash loan, personal loan and etc. if they need the money urgently.
For more information about veteran loan, please check out
VA Home Equity Loan instead of VA Home Loans
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