Who Is Eligible To Obtain This Loan

Category: Finance, Mortgages.

Many people are kept out of the housing market due to lack of sufficient down payment and/ or funds available for closing costs.

In fact, the lack of resources keeps veterans renting instead of becoming owners as they try saving money to buy a home. Yet these potential homeowners can afford to make a rental payment that would be equivalent to a mortgage payment. Meanwhile home prices continue to appreciate as housing continues to rise in cost. VA mortgages allow for a home to be financed in one loan up to 100% of the acquired home s value. Here is where the Veteran Home loan program excels over competing loan products. In addition, the seller is allowed to pay most- if not all- of the closing costs and prepaid items. Most housing types are eligible: residential homes, townhouses, condominiums, manufactured homes, new construction and even 1- 4 unit rentals( additional conditions apply) .

This means little to no cash out of pocket. If lack of available funds is the issue preventing home ownership, VA Loans offer the solution. It is a shame that more veterans don t familiarize themselves with this benefit. Still, very few veterans take advantage this type of mortgage. The interest rate is the same or lower than most conventional financing. The eligible loan amount is the same as a conforming conventional loan- currently at 417K.

The mortgage products offered range from 10- 30 year fixed rate mortgages, ARM s( adjustable rate mortgages) , and even temporary buy- downs are allowed. In addition, VA financing can be used for refinancing existing homes. The product is as competitive as most that is available. As you can see, the product isn t the problem. The lack of awareness is the problem. If they don t offer the VA mortgage, then find someone who does. Ask your mortgage broker or lender to explain your options.

We at Venture Development offer VA loans. Until you compare mortgage options you won t know what is right for you. In the end, you may end up with a conventional or FHA loan if these products are better suited for your situation. Another advantage of a Veteran mortgage is the flexibility found within the underwriting process. Credit for all types of mortgages is more stringent today than in the past. Employment history is very flexible.

That being said, the focus is going to be on the last 12 months of payment history. A prior BK or foreclosure is also forgivable. Underwriting can use alternative sources of credit such as utility bills and cancelled checks if the credit depth is weak. Depending on the type of bankruptcy, you would be eligible one to two years following your discharge date if you ve reestablished positive credit. Many veterans and even some of their spouses can obtain a veteran mortgage. Who is eligible to obtain this loan? Here is a very short list of who is eligible: Veterans who served during WWII, Vietnam War, Korean Conflict, or Persian Gulf Conflict AND who have served 90 days of active duty, or have been honorably discharged, or were National Guard/ Reservists activated.

Reservists and National Guardsmen are eligible after 6 years of enrollment in a selected service. Veterans with service during Peacetime periods and active duty military personnel must have had more than 181 days of consecutive active service before becoming eligible. There is even a program for non active duty spouses. Veterans have spent a part of their live defending our way of life. Consider this: an un- married spouse of a veteran who died while in service or from a service connected disability or a spouse of a service person who is considered MIA/ POW for at least 90 days are also eligible. Freedom isn t free.

The VA loan was created to help those that have helped all of us. Why shouldn t they be allowed to participate in the very same American Dream that they selflessly protected for you and me. Collectively we can spread the word about the benefits of this unique type of loan.