To be eligible for a VA home loan, you must be a veteran. Nevertheless, if you are a veteran, it does not necessarily guarantee you a loan. Lenders have to follow all the income and credit standards set by policy makers. To prove eligibility, you must also show proof of military service, sign a certified statement stating you will occupy the home, and purchase property on U.S. soil or any U.S. controlled territory.
Additional Benefit Information
The VA mortgage loan offers several benefits. Whether one presently has a government mortgage or a conventional mortgage, they can take advantage of certain borrower specified offers. One great offer is called a streamline mortgage. This is normally a simple interest rate reduction program. VA streamline refinance rates are presently still low enough for most veterans to benefit. This specific program is popular since it does not require one to pay any out-of-pocket fees. All costs connected to the VA refinance are combined together with the loan. In addition, income documentation, job verification and appraisals are usually not required, thus reducing considerably the time taken to close a new mortgage. VA home loans cannot normally be used for buying Wisconsin hunting land or recreational property.
Favorable fixed interest rates
Interest rates are determined by various factors. VA mortgage loans have a favorable fixed interest rate which may range anywhere from 0.25% to 1% higher than other regular fixed rates. As a result, a veteran or an active military borrower can b approved for rates not much higher than someone who has a large down payment and great credit.
Multiple VA Mortgage Loans
VA home loans are well known among first time home buyers. What many people don’t know is that a borrower can use the program for a second and even a third time. Whether it is the purchase of a new home in future or a refinance, the VA mortgage can be used multiple times. This will be determined by one’s certificate of eligibility. Once the certificate is received, it will show if one is eligible for a new VA mortgage loan.
No PMI (Private Mortgage Insurance) Payment
For every other mortgage loan, if you do not have a down payment of 20%, you will be expected to pay PMI along with your monthly payment. Not having to pay PMI enables many home buyers to be eligible for a bigger VA mortgage loan.