Veterans Home Loans
Did you know that the the United States Department of Veteran Affairs (VA) offers a very comprehensive loan guarantee program? The VA’s Guaranteed Home Loan program is an amazing for way ex-service members to qualify for a home loan they may not have previously qualified for and receive assistant in making mortgage payments. With this program, it is very easy for veterans to receive home loans.
What is the program exactly?
A VA guaranteed loan is a loan that is made by a private lender to a veteran who intends to purchase a home. The VA provides a guarantee that it will repay the loan in the case of the borrower (which would be the veteran) defaulting. Because of this guarantee, many veterans qualify for a home loan they may not previously have been able to get. Additionally, the guarantee removes the need for having a down payment and in many cases significantly reduces the interest the bank will charge.
Even with all of these benefits, some veterans still do not qualify for a loan. You need some documentation of income or else either the VA or the bank may deny your request. Additionally, you are highly recommended to go through something called “pre purchase counseling,” which is a series of counseling sessions intended to help you learn about the process of buying a home and to learn how to properly manage your debt. VA provides this counseling service, and using it significantly increases the chance that you will receive a loan, even if your income is less than ideal for receiving a mortgage.
Although the VA does not guarantee that you will receive a loan, the guarantee they provide makes it very easy for veterans to receive a loan. The VA reports that most veterans who apply for a loan receive one on their first application, and in most cases if a veteran is denied, he or she receives a loan at a later date.
The VA also provides you, in addition to the loan guarantee, an entitlement of the greater of $36,000 or 25% of your loan’s stated value up to a maximum of $417,000.
To begin, you must go to the VA and complete form 26-1880. If you are a veteran, simply go to your VA office and ask about the guaranteed loan program. They will help you get started, fill out all of the necessary forms, and even recommend banks to use.
Additionally, you may not have to contact the VA. If the bank you choose is willing, you can request that they fill out a certificate of eligibility form for your veteran’s home loan guarantee.
This is just one of a range of great financial incentives for veterans, along with military debt consolidation loans and other low interest financial services.
