Real Estate

Do you qualify for a VA loan?

We all know that most of us need a mortgage to buy a house. We go to a lender and fill out all the necessary paperwork and then we can buy the house, paying off the mortgage money that was loaned to us in monthly installments.

A VA loan, then, is a mortgage loan that is guaranteed by the US government and for use by US veterans, military members, currently serving members, and selected surviving spouses of members. Veterans can use this mortgage to purchase a single-family home or condominium, multi-unit properties, manufactured homes, or a new construction property.

While it is the Veterans Affairs office that financially guarantees qualifying loans and sets the rules on who can qualify and when, and sets the guidelines, the money does not actually come from the government, but from any qualified lender (bank or other financial institution).

The intent of these VA Loans is to provide funding for a home for service members and their families without the worry of having to pay a down payment as you do with other mortgages. If you don’t have a down payment to make, then more of your money can go toward paying off the mortgage, and that’s the idea of ​​the loan.

The original law was passed by Congress in 1944, after World War II, and more than 20 million VA home loans have been issued since then. After some amendments over the years, the scheme has been expanded and increased to allow more service members to qualify and to include more housing options for those members.

If you qualify for a VA loan, you are allowed 103.3% financing without private mortgage insurance, which is a huge savings compared to a traditional mortgage. You can also get 20% toward a second mortgage and up to $6,000 toward energy-efficient home improvements. In addition, a VA financing fee of between 0 and 3.3% can be added, again, much better than a traditional mortgage.

Being in the military is not an easy job, and it’s good to know that once you’re a veteran, help is available to finance your property. Whether he’s still serving, a proud veteran or the spouse of a fallen hero, the government has you covered with benefits when it comes to financing his home.

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