Guidelines To Applying For Veteran Home Loans

Written By Admin on Sabtu, 26 April 2014 | 01.51

By Agnes Dickson


It is nowadays more difficult for people to get mortgages because of the stringent requirements in application. It is therefore not easier for veterans to get loans to fund their needs of owning homes. This is why there was the introduction of veteran home loans to enable such servicemen own homes.

There are various stipulations that one has to meet before being considered eligible for the loan. Those who need it must have served in the army for quite some time e. G. For those who were there during the peacetime period it must be more than 181 days and for the National Guard service men its 6 years. If you served for more than 90 successive days during wartime then you also qualify to apply for the loan. The latter includes wars such as World War 11, Vietnam War, Korean War, the Gulf war and the 24-month rule.

The government normally bases its determination of individuals who are eligible for the loan on the above conditions. If one satisfies them, then they are issued with a certificate of eligibility. This is however not a guarantee that the loan will be awarded as there are other things that lenders take into consideration. Banks will normally want to determine whether you are able to repay the loan thereafter. This is why they will go ahead and ask for a credit report. This is a document which shows the credit history of an individual and also tells if there are unpaid debts or not. Lenders will also want to know whether you have a sufficient income which can support the repayment program.

Those who meet the above conditions are more likely to benefit more from the veteran home loan as compared to the other types. These loans do not need a down payment as it is with the other types of mortgages. Also the guarantor in this case is the federal government.

These loans have enabled many to own homes of their choice because there are no regulations regarding the types of homes that one should buy. There are those who opt to buy manufactured homes, new ones and also those who just go ahead and build new ones. You can as well fit new installations in your current house with the money.

The process is very easy and simplified. After getting an approved lender, just identify the home you want to buy. You will however need to sign a purchase agreement with a real estate agent who is qualified. With a certificate of eligibility, the process can be completed.

The loan process is closed once the documents mentioned above are presented. You should therefore ensure that you have them in hand when applying. Also take note of the other factors mentioned above that will be considered.

These loans favor individuals living on a low budget. The reason behind this is the fact that lenders do not need any private mortgage insurance. This is different from normal ones as one is normally required to pay a monthly insurance fee. On top of this, the interest rates are friendly. The loan can also be repaid before it matures because of the policy that penalty is not charged when pre-payment is not made.




About the Author:



0 komentar:

Posting Komentar