VA Home Loan

VA home loans or Veterans Administration home loans just like FHA home loans are also funded by commercial lenders but insured by the federal government. These loans have low interest rates, zero down payments. VA home loans provide assistance in purchasing a home for United States Veterans.

Advantages of VA home loans:-
1.You can purchase a home with no down payment.
2.VA home loans are slightly easier to qualify for a Veterans Affair loan when compared to a regular loan.
3. VA home loan allows borrowers to finance 100% of the loan amount.
4. VA home loan only requires proof of veteran status to qualify for the loan.

Terms and conditions to be eligible for VA Home Loans
1.VA home loans are only eligible for those who have served in the United States military.
2.You must have been on active duty for at least 181 days during peace time and 90 days during war time.
3.If you served less than the standard 181 days, you may be eligible if discharged for a service connected disability
4.You must have been discharged under other than dishonorable conditions.

Who can qualify for a VA Loan?
The following table shows what type of service (and for what duration is required in order to be eligible for a VA Loan:
Service during Wartime: WWII 09/16/40 to 07/25/47
Korean 06/27/50 to 01/31/55
Vietnam 08/05/64 to 05/07/75
Persian Gulf 8/2/90 to undetermined

You must have been at least 90 days on active duty. Plus, you must have been discharged under normal conditions. Even If you served less than the standard 90 days, you will be eligible if discharged for a disability.
Service during Peacetime: - 07/26/47 to 06/26/50
02/01/55 to 08/04/64
05/08/75 to 08/01/90

To qualify for a Veteran Loan, you must have been on active duty for at least 181 days. If you were discharged, you must have been discharged under other than dishonorable conditions. If you served less than the standard 181 days, you may be eligible if discharged for a service connected disability.

New Factors of VA home loans
The VA home loans are now offering VA adjustable rate mortgages (ARM). You have to check it out whether you qualify for a 3yr or 5 yr ARM. If you are planning not to stay in your home for a longer duration then the ARM may be best for you. The VA Adjustable Rate Mortgage is fantastic for anyone who does not plan on staying in their home for more than 5 years. It will help save you a great deal of money because the interest rates are generally much lower.

Few queries about VA home loans:
( 1) Is the spouse or children of a veteran eligible?
The children are not eligible but a spouse is eligible if the veteran died as a result of a service connected disability or died while on active duty. .
( 2) Who makes the loans?
Loans are actually made by the Private Lenders. However, the VA guarantee protects these lenders against loss. The guaranty will allow lenders to make loans without other requirements (for example, a down payment).

You can get a VA home loan even if you have been foreclosed on in the past. The best way to find out how to qualify in such situation is to contact a mortgage specialist. They can give you advice on what you can do to ensure you can qualify for a loan. Even if you are considering a VA home Loan, remember that there are still a variety of different mortgages.