Military People buying homes

By: Jeff Guthrie

The Veterans Administration ("VA") introduced the VA home loan in 1944 to specifically benefit veterans by allowing them to purchase a home with little or no money out-of-pocket. The VA's recent decision to raise the loan limits for this program has opened the housing market to veterans on an even greater scale.

Currently, the VA loan limit is $417,000 in the continental United States and $650,500 in Hawaii, Alaska, Peru, and the U.S. Virgin Islands. Although government backed mortgages have been around for years, there is no better time than now to take advantage of this benefit.

Recently, the investors who service mortgage notes have been negatively impacted on 100% financed loans. Default rates have reached an all-time high, so investors are cutting their losses by eliminating risky loans. This leaves many credit-challenged borrowers searching for other mortgage options. The good news for veterans is that VA loans are still going strong!

"VA government-backed" mortgages are extremely attractive to investors. Since the government insures 25% of the value of the veteran's home, it reduces their risk and enables mortgage companies to continue to approve veterans for 100% financed loans. This enables veterans who have experienced past credit problems the opportunity to qualify for a VA home loan. To apply for VA Loan, veteran simply fill out an application with a VA Approved Lender

The VA home loan is traditionally underwritten, which means the underwriter is able to make a decision based on a variety of factors other than credit scores. These government protected loans will continue to help many veterans achieve the American dream and find a place to call home!

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