The U.S. Veteran’s Administration created
The U.S. Veteran’s Administration createdVA Loans to support U.S military veterans as well as their spouses financially. VA Loans among the most flexible and powerful option available for veterans.
The key benefit of VA loan is the ability to buy without any money down. This kind of facility is hardly available that allows 100% financing. These loans moreover come with less strict underwriting standards than other types of loans. As a matter of fact, nearly 80% of VA borrowers couldn’t have met the criteria for other conventional loans. There isn’t any private mortgage insurance (PMI) on these loans which is a per month expense which conventional borrowers need to pay until they put down a minimum of 20% of the amount of loan.
1. Reasonable interest rates as compared to other routine loan rates
2. Prepayment penalties doesn’t exist
3. Sellers are allowed to pay as much as 6% of concessions and closing costs
4. Greater allowable debt to income ratios
All over the country, veterans as well as active duty members have the eligibility to participate in this loan program. At least one of the following categories should hold true to be eligible for this program:
1. Military persons who have remained on active military duty for 181 days or 3 months while war
2. Spouses of individuals killed in the line of duty
3. Individuals who have served 6 years in Reserves or National Guard
What Can Be Bought With This Loan?
VA loans are normally utilized for purchasing or making a family hone. However, these loans are flexible enough and may be used for improving the living standards or save money monthly via refinancing. Other ways to use this loan are:
1. Refinancing a current VA or direct loan for lowing the interest rate
2. Refinancing for taking out cash
3. Improve, repair, or alter a home owned by the borrower
4. Simultaneously buy and improve home
5. But a residential unit within a condo development that is approved by Veteran’s Administration
6. Buy a farm house to be occupied and owned by the borrower
7. Buy a modular or manufactured home
However, this should be kept in mind that this loan cannot be used to buy an investment property. This loan is targeted towards making veterans homeowners, instead of becoming entrepreneurs or landlords.
Freedom Financial Services are one of the best mortgage lenders that will allow you to identify if you are eligible for a VA loan and what suits you the best. All the offices are open 7 days a week and they even offer you the flexibility of a house call. So, don’t worry if you don’t get sufficient time to visit their office. Just call them and an agent will be right there at your doorstep to assist you with all the loan matters. So what are you waiting for?