The Basics Of Va Loans

The Basics Of Va Loans



The Basics of​ VA Loans
While the​ G.I .​
Bill educated millions of​ military veterans,​ VA loans give them a​ step up on​ homeownership .​
Here are the​ basics of​ VA loans.
The Basics of​ VA Loans
Much like a​ HUD,​ the​ VA does not actually issue home loans to​ veterans .​
Instead,​ it​ makes home loans easier to​ get by guaranteeing that lenders will be repaid the​ full amount issued .​
This protects lenders from the​ risk of​ default on​ the​ loan .​
In exchange for the​ VA guarantee,​ lenders provide easier loan processing and make it​ far easier to​ get into a​ home from a​ cost perspective .​
In many cases,​ the​ borrower will not be required to​ make a​ down payment or​ a​ nominal one if​ necessary .​
The borrower will also not be require to​ pay private mortgage insurance,​ which non-military borrowers typically must pay on​ loans made with less than a​ 20 percent down payment .​
One potential downside to​ a​ VA loan is​ the​ guarantee amount .​
Currently,​ the​ maximum amount is​ $203,​000 .​
In many parts of​ the​ country,​ this figure is​ insufficient to​ buy a​ home .​
Veterans should contact their local benefits office to​ find out current guarantee amounts as​ the​ program is​ modified from time to​ time .​
To obtain a​ VA loan,​ a​ person must meet a​ few general requirements .​
Obviously,​ they must have served in​ the​ military .​
Specifically,​ you​ must served in​ active duty during World War II or​ later and not have received a​ dishonorable discharge .​
Individuals serving during times of​ war must have put in​ at​ least 90 active duty days .​
Individuals serving during periods of​ peace must have put in​ 180 days .​
For veterans who served after 1980,​ the​ qualification time period is​ two years unless active duty occurred during either of​ the​ Gulf Wars .​
In such situations,​ the​ time period is​ 90 days .​
Obviously,​ it​ gets a​ bit confusing .​
Make sure to​ speak with your local office to​ determine your eligibility .​
VA guaranteed loans are excellent financial products for purchasing a​ home .​
Every veteran should look to​ them first when contemplating obtaining a​ mortgage loan.




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