The Ins and Outs of VA Loans

The Veteran’s Affairs Department of the U.S. government has offered guaranteed home loans for veterans for over 70 years.

Both active duty military people and veterans can acquire financing to purchase homes through the VA home loan program.

These mortgages offer benefits that make them a good option for many homebuyers.

About the VA Guaranteed Home Loan

VA home loans are guaranteed by the U. S. government.

This guarantee means that, if you are unable to pay the loan, the government will ensure that the lending institution receives its payment.

However, this guarantee of repayment is a desirable feature for lenders, who will be more inclined to provide the loan to the applicant.

Most of the usual requirements for a loan apply, but the applicant must also provide documentation of their service record.

Advantages of VA Guaranteed Home Loans

Home buyers find that a home loan through the VA program offers a number of advantages:

· No down payment is required if the price of the home does not exceed the appraised value.

· Private mortgage insurance is not required, which keeps monthly mortgage payments low.

· Closing costs may be paid by the seller of the property.

· Closing costs are limited by VA rules.

· No early payment penalty can be imposed.

· The VA can offer advice and practical help if you have trouble paying for your home mortgage.

Eligibility Requirements

Applicants are required to provide a certain amount of documentation, just as they would for a conventional loan, such as:

· Social security numbers and valid ID

· Certificate of Eligibility that provides information on your current service, dates of previous service, discharge papers, or service benefits statements

· Proof of employment, names of employers for the last two years. If self-employed, you must provide the last two federal income tax returns.

· The last 60 days of statements from checking and savings accounts

· The purchase contract

· The appraisal of the property

· Assurance that you will occupy the property yourself

· Credit record

· Credit card statements

· Child care expenses

· Corrections or clarifying information on negative credit reports

Lending Institutions That Offer VA Loans

Not all lending institutions offer VA home loans. However, many do, and these lenders may have departments or personnel who are trained in the special requirements of the VA program.

The lending institution is not obligated to provide a loan to those who apply. However, these institutions understand that having the loan amount guaranteed by the government makes it an attractive risk.

Refinancing A Home Through the VA Home Loan Program

The VA loan program also has a method of refinancing home loans to make your mortgage more affordable.

The Interest Rate Reduction Refinance Loan, often called the IRRRL, is a streamlined process that allows homeowners who have VA guaranteed loans to refinance at a lower interest rate, without having another appraisal or credit underwriting to qualify.

Any costs of the refinancing can be rolled into the new loan, so that the applicant does not have to provide out-of-pocket money during the process. Both fixed rate and adjustable rate mortgages are available.

Our VA Loan Specialist helps veterans obtain the loans they are entitled to.

He served in the United States Marine Corps, and now devotes himself to the Veteran home buyer in the Phoenix area, fulfilling a passion of his while at the same time helping others achieve home ownership.

Be a proud homeowner today.

For more details call 480-351-5904 or visit the site

www.valoansforvets.com

VA Loans for Vets7702 E. Doubletree Ranch Road, Suite 220Scottsdale, AZ 85258Phone: (480) 351-5904Email: jimmyv@fcbmtg.com