Veteran mortgage loan
Veteran mortgage loans are those mortgage loans that are offered to veterans or military personnel. In most of programs, spouse is also eligible to get the loan. Veteran mortgage loans are offered under the category of VA loans that were started in the year 1944. Main objective of veteran mortgage loans is to provide assistance to veterans and their families in gaining homeownership. Millions of veterans have been benefited through these loans.
Veteran mortgage loans are offered by various mortgage lenders located across the nation as guaranteed loans. A person can approach banks, private lending institutions, mortgage companies etc for getting loan amount. It is important to understand here that loans are offered for personal occupancy by these lenders. If any borrower fails to repay the loan amount, lender is protected against the loss made. This protection is provided in lieu of down payment and this is the reason why down payment is not required for getting veteran mortgage loans. Terms and conditions attached with these loans are favorable. Interest rates offered are lower than market interest rates. Application process is also very easy.
However, borrower is required to provide Veterans Certificate of Eligibility and appraisal. More and more numbers of lenders are now being approved for automatic lending, which has made the process quite fast as loan can be closed before obtaining the approval for the credit application of a person. Veteran mortgage loans can be obtained for buying home like a townhouse or a condo in any VA approved project, for building home, for buying and improving home simultaneously, installing energy related features in home, for manufacturing home or lot etc. If a person wishes to buy manufactured home, it is required that home is minimum 24 feet wide and land must be included in it. Also, manufactured home must have identifiable tag.
There are certain requirements that must be fulfilled for getting these loans. First of all, a person should have a good credit rating. It is better if a person contacts credit counselor or financial planner for understanding about credit report and credit rating and for understanding the steps that can be taken for improving the same. Loans are offered only when it is ensured that borrower can make the payments.
Maximum guarantee that is authorized by VA is 25% of the loan amount. Maximum limit of guarantee is $104250 and maximum loan amount is $417000. However, these two amounts in AK and HI states are $156375 and $625500 respectively. If both spouses are eligible to get the loan, property can be acquired jointly. Under the VA Jumbo Loans, borrower can now apply up to $1000000. Similarly, under Super Max Jumbo Loan, a person can apply for loan amount up to $729750 with zero down payment.
There are many advantages of veteran mortgage loans. These include no money down, no private mortgage insurance, low interest rates etc. If a person wishes, he can go for refinance veteran mortgage loans at little cost through Streamline Refinancing program. Veterans are allowed to negotiate the interest rate with lenders of their choice. These loans are offered at fixed interest rates and at adjustable interest rates. In case of adjustable rate loans, interest rate can be adjusted up to 1% in a year and up to 5% over the loan term. Many experts feel that getting pre-approved for the veteran mortgage loans can help a person in saving time. He can easily know about the loan amount that can be obtained and the monthly payments that would be required to be made. With this information, searching home becomes very easy and with affordable payment, chances of borrower defaulting in loan repayment also become less. Maximum loan amount can be found out using the debt to income ratios.
Certificate of eligibility has always been a concern for borrowers regarding veteran mortgage loans. However, this has been made easy and a person can get it online through ACE or Automated Certificate of Eligibility.
If current VA loan interest rates are seen, 30 year fixed mortgage loans are offered at 5.5% with an APR of 5.610%. Similarly, 15 year fixed rate mortgage loans are offered at 6.5% with 6.694% APR.
Getting veteran mortgage loans
Getting veteran mortgage loans is easy. A person can search for different types of lending institutions offering these loans. This search can be done efficiently online. There are also some web sites that provide complete information about these loans and allow a person to apply for loan. For example, valoans.com is one such web site.
Ameristar Mortgage is one source that offers veteran mortgage loans in Illinois and Wisconsin. A person can choose from fixed rate mortgages and ARM. Initial fixed rate period allowed is 3 years. Fixed rate loans are offered for 15 and 30 years. Loans are offered strictly to individuals that have been qualified through military service and other entitlements. Conforming loan limit has been capped at $417000 with no down payment. There are no minimum loan amount criteria and no prepayment penalty. Borrower is not required to make any monthly insurance premiums and closing costs applied are limited.
Similarly, vamortgagecenter.com is another source that specializes in assisting people in getting veteran mortgage loans. For maximizing the loan benefits, it employs VA experts. Assistance is provided to veterans throughout the loan process. No obligation process can be started online for getting the eligibility and qualification. This center can be called over phone at 800-405-6682. It is located at 2101 Chapel Plaza Court, Suite 107, Columbia MO.
Militaryvaloan.com is also one online center specializing in offering veteran mortgage loans. Apart from home loans, a person can also apply for Streamline Refinance. This program is offered with no out of pocket expenses as pre-paid charges and closings costs are included in the loan amount. There is no income documentation or job verification. A person can skip up to 2 payments. There is no requirement of credit qualification, but borrower should have current mortgage and in the past 12 months, there should not be more than one late payment for 30 days.
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