About VA Loans

Loans that are guaranteed by the U.S. Department of Veterans Affairs are known as VA Loans. These loans came into effect when President Franklin D. Roosevelt signed the GI Bill of Rights. The aim behind introducing these loans is to enables army veterans to fulfill their dream of buying a home. People who are army veterans are only eligible to apply for VA Loans, with zero percent down payment. Where can you get a VA Loan? You can get VA Loans by approaching any of the following loans sources: - Banks- Financial institutions specializing in offering such loans- Private lenders Features Before you apply for VA Loans, you must be aware of the special feature of this type of loan. Here is a look at what they are: When you take a VA Loan to buy a home, you can only reside in it and not let he property out for rent.  The government protect you in the event that you are unable to pay the loan in the future You can purchase housing units that have the approval to be purchased
by a VA Loan.  When applying for a VA Loan, you have to pay lender charges of 1% and reasonable discount points   Types of VA Loans There are many types of VA Loans available and you should look into what these are to know which is most suitable for your requirements. Here is a look at what they are: VA home loan â€" Purchasing a new loan VA loan for refinance â€" Repayment of real estate debts VA construction loans â€" New Home Constructions VA streamline refinance â€" Reducing interest rates VA adjustable rate â€"  Purchasing homes with lower monthly repayment amount. There is a fixed rate of interest which applies during the first few years, after which the interest turn into an adjustable rate one   Benefits of Taking VA Loans There are many benefits in taking a VA Loan. These are as follows: Since the loan is guaranteed by the government, if there is a problem in repaying due to high difficult circumstances, the government will take off t
his responsibility No need to take any private insurance coverage for this loan typeThe loan is versatile as the money from the loan can be put to many different uses Who is Eligible for a VA Loan? You can opt for a VA Loan, if you satisfy the following criteria: You are a veteran who served in active duty in the Navy, Army, Marine Corps, Air Force, or Coast Guard and was discharged with honour.  You we involved for a period of 90 days in wars and for 181 non-stop days in peace.  You served as National guard for a period of six months You served as a Member of the Selected Reserve for a period of more than 6 years You served on behalf of governments who were allies for the U.S. govt. during the Second World War You served as an office in the National Oceanic and Atmospheric Administration, or you were a member of Public Health Service officers, or a cadet at service academies.   There are also other criteria that apply for eligibility such as proper clearance of federal d
ebts, liquid assets, military benefits, and so on which should be mentioned hen applying for a VA Loan.  You can also pre-qualify for a VA Loan as this makes you closer to the prospect of getting a loan for buying property. VA Loans Documents Here is a look at the kind of documents required for a VA Loan: You need to submit a VA Form 26-1880, which is a Request for a Certificate of Eligibility. You also need to provide a DD-214 means ‘discharge papers’. Other documents necessary are bank statements, information on assets that you own, any loans you have taken so far, social security number, residence address for the past two years, How much loan amount is assured for a VA Loans? When you apply for a VA Loan, you can be sure of getting a guaranteed 25% of the home loan, when the amount requested is lesser than $104,250. The loan amount will cover funding charges and the purchase price  or the money the property is worth ( whichever is lesser) VA Loan Costs As a vet
eran applying for a VA Loan, you have to bear all the expenses of a VA Loan yourself. VA Loan costs include funding fee, inspection money, recording process fees and taxes, payment for insurance and title examination, payment for credit report and refinance loan charge, if refinancing has been done. Disadvantages If you are considering taking a VA Loan, you should also be aware of drawbacks. You might not get the best home available in the market. You have to make arrangement to pay the closing costs of the loan yourself.    

View this post on my blog: http://www.federalpersonalloan.com/federal-personal-loan/about-va-loans.html