Veteran's (VA) loans are designed to give veterans who seek home ownership a leg up in the lending landscape. As such, the VA loan advantage consists of many benefits, including less-restrictive eligibility guidelines and the ability to borrow up to 103.15 percent of the value of a home for purchase transactions. Additionally, interest rates may be locked in for service members honoring active duty commitments. Therefore, dollar for dollar, the veteran loan outshines its conventional counterpart.
Those Eligible For VA Loans Should Obtain A COE
To be eligible for VA loans, service members (active or retired), or surviving spouses of active veterans killed in the line of duty, must obtain a Certificate of Eligibility (COE) based on qualifying length of service and/or discharge. Many VA-approved mortgage brokers help veteran obtain a COE during the loan application process. Veterans can also manually obtain a COE by directly applying to the Veteran's Administration Department. Either way, applicants must have a valid COE in order to be eligible for a home loan that will be backed by the Veteran's Administration.
After obtaining the Certificate of Eligibility, a lot of first-time buyers become worried about coming up with a substantial down payment or cleaning up a history of credit blemishes. For this purpose, veterans enjoy relief from many of the stringent prequalification standards of conventional loans. Apart from a valid Certificate of Eligibility, veterans enjoy relaxed credit requirements (fico scores as low as 600 in some cases!), little or no down payment requirements, lower payments and lower mortgage rates, and no pre-payment penalties for early payoffs.
All of these perks make applying for and getting veteran-loan financing very attractive. When used properly, a veteran's home loan is a valuable asset! Put simply, a service member with a dream of homeownership has a practical way to achieve such a wonderful dream. Can you think of a better method to reward an honorable service member?
Since 1944, millions of service members and loved ones have become homeowners thanks to the Servicemen's Readjustment Act (GI Bill). Unfortunately, only about 10 percent of eligible veterans take advantage of this benefit. Consequently, if you are a veteran and believe you are eligible for a loan, or would like more information on VA loans, contact a VA-approved mortgage lender today. Someday soon, you'll hear the words: welcome home soldier; and hopefully, this will be in reference to a home of your own.
Author Resource:-
Learn more about the benefits of va loans and va hybrid.
![[Valid RSS feed]](http://article-stars.com/articles/images/icon_Rss.png "XML Feed For RSS"){kind=icon}
Category Rss Feed
Print This Article
Add To Favorites
