VA Home Loans
VA loans have certain benefits that allow veterans to receive the same and better benefits than everyday customers. VA loans have no down payment required when purchasing a home. There is no down payment for loans up to $417,000 for a loan more than $417,000 there is a small down payment required. Even if a veteran has bad credit, but there credit rating is improving, they have the opportunity to get the same interest rates as those with good credit. Also those who are eligible for the VA might not be eligible for standard loans, and the VA loan will be at a very similar interest rate. Most home loans require monthly mortgage insurance, but as a veteran and with a VA loan, there is absolutely no monthly mortgage insurance to worry about. Veterans also have the opportunity to choose a fixed rate or adjustable rate, known as the hybrid ARM product.
There are some fees applicable to some of the VA loans. There is a funding fee required by the department of veteran affairs, which usually varies between 0-3.3 percent. If a veteran is 10 percent or more disabled due to active military service, there is no funding fee required. The funding fee is also added to the total loan amount, so this fee will not be paid directly from the borrower.
Those who are eligible for the VA loans are as follows:
Discharged veterans who were discharged after WWII, who do not have the status of "dishonorable", Active duty veterans who have served at least 90 consecutive days of active combat, peacetime veterans and veterans who have served more than 180 days of consecutive service, or enlisted veterans who began service after 1980, or officers who began service after 1981 who have served two years.
The VA Mortgage funds can be available to purchase a Home, condominium, or townhouse. They can also be used to make additional improvements, or build a home in addition to being used to refinance a mortgage or improving your home with energy saving related features. The current interest rates for VA home loans are, 5.598 percent for a thirty year loan, 5.164 percent for a fifteen year loan, and 4.455 percent for the hybrid ARM 3/1 loan.
For veterans with disabilities or special needs the VA has added benefits to make home ownership possible. Click to learn more about Specialty Adapted Housing Agents.