Back in 1944, the VA Home Loan Program was created initially for the benefit of all service personnel who had served in World War II. Recent changes however have enabled even those on active duty to be eligible for VA home loans. The purpose of the VA loan was to make it possible for all those veterans who had served America in the country and abroad to own their own home irrespective of their credit history. The government wanted to save them from the hassles other civilians had to endure to get a home loan like a good credit history, down payment, closing costs, and so on.
The Purpose of VA Loan
The concept of a VA loan is designed to be beneficial to the borrower. Every attempt is made to make home buying an easy and affordable experience but at the same time a safe experience. The government realized that a lot of the veterans spent years in overseas service and thus they do not have a good credit history. Some of them do not have enough savings for a down payment. The government wanted to ensure they had a home to go back to at the end of their long service to the nation and hence was started the VA loan and VA refinance.
Lenders Backed By the VA Loan Program
Lenders who lend to the veterans are assured of the repayment of their loan by the VA loans Program. The only criteria the veterans have to fulfill is a satisfactory payment history. They should have a history of having paid their bills, rent, and car insurance regularly. They should also show some proof of current income or anticipated income. This income should leave them enough to meet the mortgage payment after assuring the veteran and his family of a decent standard of living. They have therefore to show a FICO Credit Score of at least 602.
Advantages of A VA Loan
The advantage of getting a VA loan is that you are protected by the Veterans Administration department. There is a VA inspector who ensures that you are not cheated.VA refinance options are available at lower interest rates. Refinancing is possible in the streamline process without a credit check and usually without an appraisal. Documentation required is also minimal. Moreover the VA will not allow its member to be overcharged in service fees by the lending agency. VA loans can be taken over by a buyer. The new buyer will assume-ability and take over the old loan. The VA functions as an umbrella to protect its members.
The advantage of getting a VA loan is that you are protected by the Veterans Administration department. There is a VA inspector who ensures that you are not cheated.VA refinance options are available at lower interest rates. Refinancing is possible in the streamline process without a credit check and usually without an appraisal. Documentation required is also minimal. Moreover the VA will not allow its member to be overcharged in service fees by the lending agency. VA loans can be taken over by a buyer. The new buyer will assume-ability and take over the old loan. The VA functions as an umbrella to protect its members.
- Author Articles
- More From This AuthorPeople generally go in for refinancing when they want to have a smaller mortgage period or if they want to switch from an adjustable rate to a fixed rate. The refinance loans are usually at fixed rates so the...Refinancing is basically switching your old loan for a new loan wherein the new loan pays off your old loan. The new loan is usually of the same size and a better loan in terms of rates of interest, so the...VA home loans benefit is regulated by the Department of Veterans Affairs for the veterans of US military, both on retired and active list. It provides 100% financing for the veterans with Zero down payment...Being in military in United States of America is a ‘Blessing in disguise’, if one is planning to set up or procure a house. The Department of Veteran Affairs, governs Veterans Administration of the United...All the members of the United States of America, either in active or retired list, are benefited by the Veterans Administration of United States of America, under guidelines of Department of Veteran Affairs....
- Related Articles
- Related ArticlesSummer vacations can add up fast, especially if you are bringing children along for the fun. And, when you are headed to somewhere like Pennsylvania Dutch Country you definitely don’t want to spend your...Metal nameplates are manufactured using materials like aluminum, stainless steel, and brass. On the other hand, labels are usually manufactured using polycarbonates, polyester, vinyl and other plastics....Best wedding Photographers Toronto are agreed that name based on their qualifications of taking photos for not only marriage parties, but for other events such as, baptisms, bridal showers and appointment...There are many products and services in the market for weight loss program. These all things can be divided into two parts, dieting and Exercise. Dieting is basically involving a meal replacement program to...If you want to watch movies or listen to music on your Apple devices like iPhone, iPod, iPad or AppleTV, you need to sync videos and audios from your iTunes library to your devices. And your iTunes could only...
- Latest Articles
- Latest ArticlesSummer vacations can add up fast, especially if you are bringing children along for the fun. And, when you are headed to somewhere like Pennsylvania Dutch Country you definitely don’t want to spend your...Your mom, family, or perhaps friends disapprove of your tattoos. Perhaps you have had a abrupt change associated with heart to your tattoos and wish a tattoo undo? Nicely for this purpose, you can consult...Living in America and the American Dream are things that many people the world over aspire to do or to attain. Whether or not they do that and the way that they do that varies on each person but they say if...No doubt, there are many benefits of masturbation. Although, there are lots of myth which are quite popular. However, these myths are just plain lies. The people spreading them, do not have proper idea about...Most of the time, diabetes is genetic and is usually inherited from the old diabetics as well. People who have diabetic relatives tend to develop the disease compared to people without diabetes in the family...
