Owning your own home is an integral part of the American dream & as such, the US Dept of Veterans Affairs supports veteran service members in their effort to get their own home through the Veterans Administration Home Loans Program. The program, created to make it easier for veterans to acquire mortgage loans to build or purchase a home is considered one of the most successful programs of the department and is available through local VA offices around the country.
Basics of the Program
The program is basically a way for the government to “stand behind” or back loans made by veterans, guaranteeing a way for lenders to recover any loses if the veteran fails to make the appropriate payments for the loan. By doing this, the government, through the Department of Veterans Affairs makes it the prospect of providing loans to veterans extremely attractive which creates otherwise unavailable opportunities for veterans like, for example, no down payment loans and low-interest rates for veterans affairs loans. Take note that the money that will actual be released through the loan will come from private lenders & not the VA itself.
Advantages of Using the Program
The primary advantage is that more lenders become willing to take on loans from veterans and other qualified individuals on the V.A loan program. Second, lenders that would otherwise require a down payment will no longer do so because of the guarantee provided by the government. VA loans for veterans are also available at competitive market rates that might otherwise be inaccessible to the veteran. There are also inherent savings in taking a VA guaranteed long like limited closing costs, no penalty fees for early payment of the loan, no more need for private mortgage insurance, between many others. Finally, in an effort to further support veterans, borrowers that are part of the program can asks for assistance from the VA when they run into difficulties in making their payments.
Eligibility for a V.A Loan
Generally speaking, the VA home loans are available to service members in the armed services of the United States. There are, of course, detailed rules and requirements for eligibility for the program and interested individuals may check with their local VA office or the official website of the VA for more information. Other than service members, there are other cases wherein individuals may be qualified according to the rules of eligibility.
Veterans that are considering getting V.A home loans should check with the nearest VA office for details or go to reliable professionals with experience that could help the veteran get the most out of the loan program.