It is the wish for many people to own a home, but acquiring one needs a lot of cash, making homeownership difficult. However, for those in military service or veterans and eligible spouses of service personnel, there is a possibility of you owning a house through a program known as the VA Loan Programme.
What is The VA Loan Service?
You might be wondering how VA loan operates, but no need to worry. This is a guaranteed mortgage backed by the US Department of Veteran Affairs, issued by banks, Mortgage Unions, or credits company organizations. Since the government backs it, lenders can easily offer their services, allowing you to own a home with no down payments.
Not only does a VA loan allow you to have access to VA-approved homes with no money in your bank account, but the VA loan can also be approved even when you have a negative credit score as long as you can service the loan.
You will need other requirements to qualify for the VA loan to be approved. Reading through the article would help you know all that is required of you.
How does the VA loan Programme Work?
What’s required of you is to fill out some paperwork with the lender of your choice that can confirm your eligibility to the program, after which you can receive your entitlement. This is the total amount that you can receive for your VA loan.
The advantage of having a VA loan is that you are not required to pay for mortgage insurance, but you will pay for a VA funding amount. This amount is calculated as a percentage of the total amount you receive as the loan. This is important as it allows the program’s continuity to the future.
VA Loan Eligibility Requirements
First, before applying for the VA loan, you need to qualify. For eligible candidates, you need to be active in service, veterans, or specific spouses of military personnel. The following are the basic requirements
You are currently on active duty or retired with an honorable discharge under the service act rules.
Have served for over 90 days in wartime or have served for over 181 active days for peacekeeping. You need to have served the National Guard for over six years. Your credit score and income must meet the lender requirements.
The home you are buying must be VA-approved and would be your primary home.
Women or men married to service personnel who died while on duty or taken as prisoners of war and have never remarried are also be eligible for VA loan.
How to Apply For VA Loan
Have a Certificate of Eligibility – For your loan to be processed, you need to have a VA COE, which shows you currently meet the military requirements for a VA loan. The certificate can be obtained online or by mail by sending a request to the VA or allowing the lender to obtain it for you.
Once you have all documentation ready, you can now make the loan application through a VA lender as not all lenders deal with VA loans.
The VA lender needs to be in a position to answer all your VA loan questions.
Before processing your VA loans, you need to have some knowledge about the working of a VA loan. Be sure the rates given align with VA mortgage rates to get the best deal in the market.
On selecting your primary home of choice, the lender will evaluate it to make sure it meets their requirements. Upon approval, the final stage would be closing the loan and moving to your new house
Salman Zafar is an acclaimed blogger, editor, publisher and digital marketer. He is the founder of Blogging Hub, a digital publishing portal with wide following across the world.
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