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The Veterans Administration of the United States makes it easy for veterans who have served or are serving in all branches of the U.S. military to buy the homes they need with the VA home loan program. The VA loan program is a government backed lending program designed to put veterans and their families in the homes they need and want.
The VA home loan is not issued or written by the United States government, it is simply guaranteed by the government. This means that you will choose an actual lender to write your VA home loan, and the government will guarantee payment to the lender should you default on your loan or fail to repay the lender for any reason.
All Military Branches Can Qualify
Veterans as well as active members of the Army, Navy, Marines, and Air Force are eligible to apply for a VA home loan, as are members of the Coast Guard, National Guard and Army Reserves. There are some restrictions regarding length of service that will determine your qualifications. Surviving spouses of deceased, MIA, or POW service personnel also qualify under certain circumstances.
Lower Interest Rates Than Civilian Loans
Because the government is backing up the money that is loaned to you, the VA home loan is written at substantially lower rates of interest than traditional loans written out to civilian borrowers. Additionally, because the government guarantees the lender repayment, the VA home loan requires no mortgage insurance like you would need to purchase on a traditional loan, which can shave hundreds off your mortgage payment each month.
Bad Credit No Problem With VA Home Loan Program
Borrowers with all credit histories can qualify for the VA home loan. The twelve month period before the application for a VA home loan is filed is what the Veterans Administration looks at to determine your creditworthiness. They are looking at your debt ratio, so having numerous open accounts can be the one thing that causes you not to be approved for funding. You should have no more than 41 percent of your income expended, including your anticipated mortgage payment, to be approved for a VA home loan.
To begin your request for a VA home loan, you should complete VA form 26-1805, which is a request for an appraisal of the home you wish to purchase. This request can be filed by the home seller, the lender, or yourself. Once appraised, you can begin the application process for your VA home loan. Many lenders will file the necessary paperwork, including the VA form 26-1805 for you, to help ease the burden of the application process.
You can find additional help to receive your VA home loan by using an online lender from appraisal through closing. Online lenders that specialize in VA home lending have the expertise to get your approved fast. Additionally, most of the paperwork required for your VA home loan can be completed online via a secure website for your convenience.
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