The life of military personnel is not an easy one. Even if he or she isn't called out to war during their service time, they are called to camps, bases, and tours around the world for months at a time.
You may be wondering who a person qualifies for a va loan. To qualify for a va loan, a person must have been in the active military, naval or air service, and discharged or released from active duty because of honorable reasons.
This post will work to unravel the mystery of what it means to "refinance" a loan and what the consequences are for doing so. Take a look.
Because of their willingness to work in this capacity, our servicemen and women that work their way to the veteran status are heroes. That status is awarded well by the government.
Your first financing refers to the initial loan taken out. That's the loan that made your expensive purchase possible.
Here is a little bit about the history of va loans, in case you are interested. The va loan originated in 1944, with the passing of the Servicemen's Readjustment Act.
This act extended many different kinds of benefits to veterans. Because of this Act in 1944, the Veterans Affairs office can guarantee or insure business, home, and farm loans made to veterans by lenders and institutions. Since this program has been in existence, the VA office of the government has insured about 18 million loans to veterans. The VA office can make direct loans if a veteran wants to buy or build a home or farm.
When your term is completed, the military will often help you find an alternate career if you're interested in pursuing different interests. They will pay for a large part of your post-secondary education as a thank you for your work.
In the case of a home however, this could mean an eviction notice. Families can't afford that to happen. Refinancing allows you to meet back with your lender, tell them your situation and see if you can get the terms of your agreement changed (often reduced to a more affordable price) based on past good behavior. If you and the lender can agree on new terms, you can benefit from a reduced monthly payment.
This made it easier and less stressful for veterans to secure housing loans. Additionally, this amendment made it possible for veterans to secure loans on mobile homes.
In regards to your credit score, your credit shouldn't be hurt too much by a single refinance. If, however, you make it a habit of refinancing credit cards, your credit report will be pulled in excess as well (hurting your credit). A single refinance for a VA home loan won't hurt you too much. Multiple will though, so use this option only when you need to.
Refinancing and second mortgages are available if needed. Loan rates are pretty set. The rules of the VA loan are very straight forward. You know what you're getting into.
It could be detrimental if saving a loan on a depreciating vehicle. So when you hear the advertisements screaming opportunities to refinance, just remember that for every ray of hope comes a consequence.
Even outside the VA loan, surviving spouses are still granted helpful pensions from the military's life insurance funds. So not only are the military personnel given great assistance throughout their lives, but family members are also granted help if they can no longer provide it themselves.
You may be wondering who a person qualifies for a va loan. To qualify for a va loan, a person must have been in the active military, naval or air service, and discharged or released from active duty because of honorable reasons.
This post will work to unravel the mystery of what it means to "refinance" a loan and what the consequences are for doing so. Take a look.
Because of their willingness to work in this capacity, our servicemen and women that work their way to the veteran status are heroes. That status is awarded well by the government.
Your first financing refers to the initial loan taken out. That's the loan that made your expensive purchase possible.
Here is a little bit about the history of va loans, in case you are interested. The va loan originated in 1944, with the passing of the Servicemen's Readjustment Act.
This act extended many different kinds of benefits to veterans. Because of this Act in 1944, the Veterans Affairs office can guarantee or insure business, home, and farm loans made to veterans by lenders and institutions. Since this program has been in existence, the VA office of the government has insured about 18 million loans to veterans. The VA office can make direct loans if a veteran wants to buy or build a home or farm.
When your term is completed, the military will often help you find an alternate career if you're interested in pursuing different interests. They will pay for a large part of your post-secondary education as a thank you for your work.
In the case of a home however, this could mean an eviction notice. Families can't afford that to happen. Refinancing allows you to meet back with your lender, tell them your situation and see if you can get the terms of your agreement changed (often reduced to a more affordable price) based on past good behavior. If you and the lender can agree on new terms, you can benefit from a reduced monthly payment.
This made it easier and less stressful for veterans to secure housing loans. Additionally, this amendment made it possible for veterans to secure loans on mobile homes.
In regards to your credit score, your credit shouldn't be hurt too much by a single refinance. If, however, you make it a habit of refinancing credit cards, your credit report will be pulled in excess as well (hurting your credit). A single refinance for a VA home loan won't hurt you too much. Multiple will though, so use this option only when you need to.
Refinancing and second mortgages are available if needed. Loan rates are pretty set. The rules of the VA loan are very straight forward. You know what you're getting into.
It could be detrimental if saving a loan on a depreciating vehicle. So when you hear the advertisements screaming opportunities to refinance, just remember that for every ray of hope comes a consequence.
Even outside the VA loan, surviving spouses are still granted helpful pensions from the military's life insurance funds. So not only are the military personnel given great assistance throughout their lives, but family members are also granted help if they can no longer provide it themselves.
About the Author:
Government Loan Pro is a licensed VA and FHA mortgage broker and we can provide a large variety of VA home loan options for you and your family. We make it easy to find refinancing options for your VA home mortgage loans, great rates on purchasing loans, and we'll connect you to the mortgage lender who can answer your questions and help you make the decisions that fit your financial needs.