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Fha And Va Loans

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Advantages of VA Loans over Conventional Loans

If you have not served in the military, getting a home loan can be maddening. The amount of documentation you have to supply can be shocking. After you submit the first pile of documents, the lender may ask for more. After a while, you start to wonder if you are applying for a home loan or seeking passage through the pearly gates. For veterans, getting a VA home loan is shockingly simple.

One of the major advantages of a VA loan is the application process. It is so simple, one tends to laugh when going through it. The first step is to contact the local VA office and apply for a Certificate of Eligibility. Upon approval, you will go house hunting and find the home you wish to purchase. You then contact a VA approved lender. The lender will order an appraisal, pull credit and ask for income statements. Basic closing tasks are undertaken such as title checks. If no issues arise, the lender issues the loan and you move in.

In many situations, the VA has created an even quicker process for veterans to be approved. One of the lengthier tasks in a loan approval can be the appraisal process. To shorten this up, the VA has a program known as the Lender Appraisal Processing Program. Lenders approved for this program can essentially accept the appraisal as a carte blanche valuation and issue a loan on the amount. This can greatly speed up the approval process for veterans.

An additional advantage of VA loans concerns the out of pocket cost to actually purchase a home. Whereas most non-military borrowers are looking at a ten to twenty percent down payment, VA loans often require little or no down payment. This allows veterans the opportunity to purchase a property without having to go through the process of saving up funds for a down payment.

Private mortgage insurance is the bane of most borrowers. Most lenders require PMI when a borrower fails to pay at least 20 percent of the sales prices as a down payment. PMI is required because the lender wants to cover the risk of the loan being defaulted on before there is much equity in the property. There is no PMI requirement for VA loans, since there is no risk with the government guaranteeing repayment. This advantage can save a borrower thousands of dollars.

The above represent only a few of the numerous advantages one can get with a VA loan. Contact your local VA office to find out more if you have served in the military.

Fha And Va Loans

Get That Dream House with Military Mortgages

The USA Servicemen Readjustments Act, more commonly known as the GI Bill of Rights guarantees US veterans to acquire VA loans or military mortgages to finance their plan of buying a home. Because of this right, US veterans are provided the benefit of acquiring loans for military mortgages with no down payment and with only the best VA rates. This was started in 1944 when President Franklin Roosevelt signed it into a law, thus, providing veterans with one great benefit. Because of this, millions of American veterans can now purchase the home they want at very easy terms.

Who are Covered by a VA Loan or Military Mortgage?

Those who have served in wartime or conflict can avail of this VA home loan right. This includes those who directly served in World War II, Korean Conflict, Vietnam War, Persian Gulf War, and even those who served in Afghanistan and Iraq. Those who served during war time must have served for a minimum of 60 days and must not have a record of dishonorable discharge from service. Also, those who served as national guards or reserves who have served for at least six years and not been dishonorably discharged can make us of the military mortgages loans.

What Type of Homes are Qualified for Military Mortgages?

There are different types of homes under military mortgages. These homes must first be located in US territory. Aside from this requirement, any veteran may choose to have any kind of military mortgage home such as an existing single family home, a condominium or town house in a VA project, an already manufactured house and lot, plus other kinds of home refinances such as home improvements and repairs.

How To Apply for a Military Mortgage

Applying for a military mortgage or a VA home loan is easy. A veteran must apply either in a VA loan office or online. If there are no VA loan offices nearby, then he can proceed with an online application. An online military mortgage application is easy and convenient. This type of application process is usually preferred by many since it is much easier and faster. Upon application, you will be directed to a home loan officer or a military mortgage officer who will assist you in the entire process. An interview is necessary to get the necessary information plus the submission of certain documents.

To apply for a guaranteed VA loan or a guaranteed military mortgage loan, you need to have a Certificate of Eligibility from VA saying that you are eligible for a VA loan. Some online VA offices provide this form and can also provide assistance on how to go about the process.

With a military mortgage loan, a veteran is guaranteed a home purchase or improvement without having to suffer high interest rates or huge down payment amounts. With the DVA as guarantor, most applications are fast and easily approved. If you are a veteran, take advantage of this benefit and get your dream home now.

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Both Dan Lewis & Militarylink5 Militarylink5 are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.

Dan Lewis has sinced written about articles on various topics from Mortgage, Finances and Business and Finance. Dan Lewis is with Great Western Mortgage - San Diego mortgage brokers.. Dan Lewis's top article generates over 18100 views. Bookmark Dan Lewis to your Favourites.

Militarylink5 Militarylink5 has sinced written about articles on various topics from Join the Army, Mortgage. Richard A. Curtis is author of article written on VA Loans & online va certi. Militarylink5 Militarylink5's top article generates over 6600 views. Bookmark Militarylink5 Militarylink5 to your Favourites.

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