Finding affordable mortgage is not easy nowadays especially for the military veterans. However, things have been better for the servicemen since the introduction of the veteran home loan program. These are special loans given to those military personnel to help them buy homes.
Due to the uniqueness of the loan, there is a selection criterion used to identify the beneficiaries. For instance, you must have served for 181 days of service days during peacetime or 6 years in the National Guard. The other way to qualify is if you served for 90 successive days during wartime (e. G. Gulf War, 24-month rule, Vietnam, Korean War and World War II).
Now, the above listed conditions are from the government (guarantor) side in order to qualify for the Certificate of Eligibility. However, the lenders do have additional requirements. For example, most of them would look into your Credit history and ensure that you have enough money to repay the loan.
Since these loans are guaranteed by the federal government, they are more advantageous the traditional ones. The fact that the government provides guarantee aside, these loans do not require a deposit. This feature alone makes it the best option for the returning servicemen since they do not have to save money to get the loan.
The other benefit is the absence of private monthly mortgage insurance. This requirement is mostly used by the banks to counter defaulters. However since these loans are backed by the federal government, there is no need for insurance. Other advantages include lower interest rates and the use of you house allowance to service the mortgage. You are also free to pay off your mortgage even earlier without worrying about the pre-payment penalty.
The other advantage of taking the loans includes diversity. For instance, you could use the money to purchases a new home or as well as build one for yourself. The money can also be used to restore installations in homes and also buy manufactured homes. Therefore, after receiving the funds, you can use it for either of these options. All you need to do is to specify the details or need for the money when applying.
Most loans have a tough application process. However, the veteran loans are not so hard to get. Instead, they have been simplified for ease of access. Primarily, you need a licensed lending institution without forgetting the home to be purchased. This is followed by fetching the Certificate of from the government, provided you had filled the Purchase Agreement form.
As soon as you have the certificate of Eligibility and a duly signed Purchase Agreement, you are cleared to take them to the lender for the application processing. The processing involves looking into your financial records to determine whether you qualify for the veteran home loan or not. The funds are then given provided you have no debts from other loans.
Due to the uniqueness of the loan, there is a selection criterion used to identify the beneficiaries. For instance, you must have served for 181 days of service days during peacetime or 6 years in the National Guard. The other way to qualify is if you served for 90 successive days during wartime (e. G. Gulf War, 24-month rule, Vietnam, Korean War and World War II).
Now, the above listed conditions are from the government (guarantor) side in order to qualify for the Certificate of Eligibility. However, the lenders do have additional requirements. For example, most of them would look into your Credit history and ensure that you have enough money to repay the loan.
Since these loans are guaranteed by the federal government, they are more advantageous the traditional ones. The fact that the government provides guarantee aside, these loans do not require a deposit. This feature alone makes it the best option for the returning servicemen since they do not have to save money to get the loan.
The other benefit is the absence of private monthly mortgage insurance. This requirement is mostly used by the banks to counter defaulters. However since these loans are backed by the federal government, there is no need for insurance. Other advantages include lower interest rates and the use of you house allowance to service the mortgage. You are also free to pay off your mortgage even earlier without worrying about the pre-payment penalty.
The other advantage of taking the loans includes diversity. For instance, you could use the money to purchases a new home or as well as build one for yourself. The money can also be used to restore installations in homes and also buy manufactured homes. Therefore, after receiving the funds, you can use it for either of these options. All you need to do is to specify the details or need for the money when applying.
Most loans have a tough application process. However, the veteran loans are not so hard to get. Instead, they have been simplified for ease of access. Primarily, you need a licensed lending institution without forgetting the home to be purchased. This is followed by fetching the Certificate of from the government, provided you had filled the Purchase Agreement form.
As soon as you have the certificate of Eligibility and a duly signed Purchase Agreement, you are cleared to take them to the lender for the application processing. The processing involves looking into your financial records to determine whether you qualify for the veteran home loan or not. The funds are then given provided you have no debts from other loans.
About the Author:
Read more about What Are The Benefits Of A Veteran Home Loan visiting our website.