What Is A Veterans Affair Va Loan

What Is A Veterans Affair Va Loan



What is​ a​ Veteran's Affair (VA) Loan?
A VA home loan is​ actually a​ guarantee rather than a​ loan .​
The VA does not actually lend the​ money to​ the​ borrower,​ but promises to​ make good to​ the​ lender should the​ borrower default on​ the​ loan .​
This promise from the​ government helps many people get loans that they might not otherwise be able to​ get.
A VA loan also comes with some very helpful and cost saving aspects .​
Many veterans may not know that a​ VA loan carries with it​ caps for closing costs which can save the​ borrower a​ lot of​ money at​ closing time .​
The VA also allows for some leniency to​ qualified VA borrowers who are having temporary financial problems.
Some of​ the​ other benefits that a​ VA home loan offers include such things as​ longer terms of​ repayment,​ no down payment for certain cases,​ prepayment rights,​ and accurate assessments of​ the​ property value for the​ planned home .​
There are many other benefits as​ well.
There are some issues that VA loan borrowers should be aware of​ as​ they go through the​ process of​ buying a​ home .​
For example,​ when you​ buy a​ home through a​ VA home loan,​ the​ VA does not offer any type of​ guarantee that the​ house is​ free from defects .​
The VA will certainly do an​ appraisal of​ the​ property,​ but this should not be taken as​ an​ official inspection of​ the​ property.
In addition,​ the​ VA does not require or​ even order builders to​ correct problems or​ defects that they (the VA) or​ you​ may find during the​ building of​ a​ property .​
That is​ your responsibility .​
In fact,​ you​ should always get an​ expert to​ inspect the​ house in​ an​ official capacity as​ it​ is​ being built (in new home construction projects) or​ as​ is​ with standing homes.
The VA will not be able to​ offer legal advice either .​
You,​ as​ the​ buyer,​ must use your own attorney for those matters .​
It is​ your responsibility to​ be aware of​ the​ laws that govern your deal and your property .​
Even with these restrictions,​ the​ VA still offers a​ great deal for many veterans.
A VA loan can also be a​ flexible loan .​
In addition to​ helping secure loans for standing homes and for building new homes,​ a​ VA loan can also be used to​ purchase a​ standing home and improve the​ home at​ the​ same time .​
They can also be used to​ improve an​ existing home by adding new energy efficiency technologies .​
There is​ also a​ provision for people to​ use a​ VA loan to​ purchase a​ manufactured home and lot,​ as​ long as​ the​ right conditions are met.
In order to​ qualify for a​ VA home loan,​ the​ borrower must be within a​ certain debt ratio .​
When your personal income,​ credit card debts,​ car loans,​ and the​ new indebtedness created by the​ VA mortgage are all tallied up,​ the​ maximum debt ratio you​ may have and still qualify for a​ VA home loan is​ 41% .​
As you​ might imagine there are many other factors that will also be used to​ measure your creditworthiness and the​ more issues you​ can resolve before applying the​ better.
If you​ are considering applying for a​ VA home loan,​ you​ may want to​ visit with a​ debt counselor to​ see how you​ might improve your financial status before beginning the​ application process.




Related Articles:




Powered by Blogger.