Veterans Affairs (VA) home loans are specialized home loans that are offered to people who are currently serving or who have previously served in the United States military, or who are eligible surviving spouses of U.S. service members.
VA home loans originated in 1944 with the passage of The Servicemen’s Readjustment Act, which enabled additional benefits for Veterans seeking to buy their own homes. VA home loans are offered by private lenders and banks but are financially guaranteed by the U.S. Department of Veteran Affairs to help current and former military personnel receive favorable terms on their mortgage loans. The VA backs VA home loans in the case that the borrower defaults. This federal VA loan guarantee provides a safety net for lenders and entices them to lend to active servicemen and Veterans. Because of this, VA home loans are highly accessible and affordable for those who qualify.
VA Loans offer several benefits to current and former military service members, including:
VA Loan lenders offer several different types of VA mortgages for all kinds of situations, including:
There could, of course, be even more options than those listed above. That’s why at MortgageAdvisor.com, we focus on finding you the right lender, so you can get a mortgage that works best for you and your lifestyle.
There are many different types of loans that are accessible for service members through the VA guaranteed loans program:
There are limits on VA home loans that are factored in when calculating the maximum amount that can be borrowed in each county. Typically, a Veteran can get up to $424,100 on average for a VA Loan with no money down. In higher priced regions of the U.S., a Veteran can borrow up to $721,050 for a VA mortgage.
There are limits to the amount of loan you can get with a VA home loan. These limits are based on the amount of liability the VA will assume, which affects the loan amount a lender will offer. Find loan limits for your area, here. You will also want to be sure that the home you buy will fit within your budget.
You are only able to get access to VA mortgages if you are one of the following:
If you meet one of the key qualifications above and you have sufficient income to meet your anticipated monthly mortgage obligations, have a satisfactory credit rating, and a valid Certificate of Eligibility (COE), you should be able to qualify for a VA Loan. These loans are highly appealing because they do not require a down payment and eliminate private mortgage insurance.
In order to receive a Certificate of Eligibility (COE) for a VA Loan, the following requirements are listed for Veterans, active-duty personnel, spouses, and other eligible individuals. These requirements help the VA to evaluate your loan eligibility based on your service commitment, duty status, and character of service.
Source: http://benefits.va.gov
Source: http://benefits.va.gov
If you are a spouse of a military member, you can qualify for a VA Home Loan as long as you fit within one of these situations:
If you do not meet the previous conditions but meet one of the following conditions, you may also qualify for a VA home loan:
Even if you do not meet the requirements in any of the categories above, you may still be eligible for a VA home loan if you were discharged due to any of the following conditions: