 Sam
Site Admin
Joined: 21 May 2005
Posts: 198
Location: CALIFORNIA
92.34 Dollars($)
|
 Posted: Mon Apr 12, 2004 5:32 pm Post subject: VA Loan - Long term home loan for veterans |
|
|
Veteran Affair loans or VA home loans are long term loans having a low or zero down payment. They are especially meant for the purpose of buying a home, building a home, purchasing and improving a home at the same time by United States veterans and service persons. Under the VA mortgage loan program, the Veterans Administration guarantees a certain portion of a home loan made by institutional investors to the veterans who are qualified.
The features of VA loans are:
- Generally, VA guaranteed loans are 15 or 30 years fixed rate products-all fully amortized.
- VA loans are all for property occupied by the owner and from one up to four unit family homes.
- The Veterans Administration charges a funding fee based on the total loan amount. It is based upon loan- to-value, the Veteran's status and whether the Veteran has used the loan program earlier. This fee may be paid in cash or financed.
- Veterans who had a VA mortgage loan before may still get their entitlement restored to use another VA loan.
VA loan is easier to qualify for than a regular loan. It also requires little or no down payment in order to purchase a home. Veterans who had served during World War II (on active duty) or at some later period and honorably discharged later can qualify for VA loans. A veteran not having a certificate of eligibility can obtain it by completing VA Form 26-1880.
Now the Veterans Affair is also offering VA adjustable rate mortgages (ARM). If one is not planning to stay in one's home for a long time (for more than 5 years) then this ARM would be most suitable. It will prove to be a boon by saving lot of money as the interest rates are usually quite lower in such cases.
Related Articles: |
|
blue
Joined: 21 Oct 2005
Posts: 1135
Location: MARYLAND
134.28 Dollars($)
|
| Posted: Fri Apr 28, 2006 5:41 pm Post subject: |
|
|
I would like to add some more information here.
A veteran can also join a non veteran in obtaining a VA loan even though he/she is not his/her spouse, but the guarantee will be based on the veteran's portion of the loan.
The non veteran's part will be not be covered by the guarantee. Lenders who offer these types of joint loans may require you to make a down payment in order to cover the risk on the non guaranteed portion of the loan.
Both the incomes of the veteran and the non veteran can be used to qualify for the loan. However, the income of the veteran must be sufficient to repay at least the portion of the loan under the veteran and the non veteran's income should be sufficient to cover the rest.
Hope this information will help.
_________________
Lets help each other. Try my blog |
|
