VA Home Loans

VA home loans are a type of mortgage financing for military veterans that offers them better options and easier financing. The Veterans Administration started the program as a way for more military veterans, especially those disabled, to own their own home. This organization is only an avenue to qualify for financing and does not personally approve home loans. Through this program not only do veterans qualify easier for homes but lenders receive reassurance from the Veteran's Administration that they won't lose money by lending to veterans.

In order to get this type of financing, a veteran must obtain a Certificate of Eligibility. VA home loans require that the veteran have served at least 90 days during conflict and 181 days during peacetime without being dishonorably discharged. Different guidelines are set for those who were injured on duty. Visit the local Veteran's Administration office to request a Certificate of Eligibility and if eligible a copy will be sent to the lender.

This program is beneficial in that veterans are able to own homes with no prepayment penalties and no down payment. Veterans also don't need Private Mortgage Insurance (PMI) and closing costs can be completely covered by the seller. The interest rates for VA home loans are lower than typical mortgage financing. Once the veteran obtains their Certificate of Eligibility, approval can be faster than for other mortgage financing. Being able to weigh the options of all financing choices takes patience and diligence. God wants everyone to excel in all financial endeavors. "Trust in the LORD with all thine heart; and lean not unto thine own understanding. In all thy ways acknowledge him, and he shall direct thy paths." (Proverbs 3:5-6)

Like most financing, a VA home loan has its disadvantages. Lenders must be VA approved to give out this special type of financing. Thus, veterans will have a limited number of lenders to work with compared to people seeking conventional ways to finance. Some lenders hesitate to offer this type of financing because they can take longer to process. Also, although the closing costs are usually paid by the seller with a VA home loan, this makes the selling price far less negotiable.

At the current percentage, the Veterans Administration will cover up to $36,000 for a $144,000 VA home loan and $60,000 for a loan over $144,000. Knowing this information, it is well worth the time to research individual eligibility. Veterans can get more information about VA home loans on the Veterans Administration website or at your local VA office. Speaking to other veterans about their experiences. They might be able to share more about the actual experience and help you avoid any problems through the VA home loan process.

For more information: http://www.christianet.com/homeloans