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No Down Payment VA Mortgage: The Only Way To Buy A House

By admin On September 14, 2010 Under VA Credit Requirements, VA Foreclosures, VA Loans, VA Purchaes Loans

With the economic problems of today, it makes a lot of sense to buy a house with a VA mortgage.  And with no down payment, you can’t beat that kind of deal.  Although getting a loan through the VA isn’t hard, you do have to follow the rules.

The Veterans Administration (VA) is designed to help US military personnel in the daily lives.  They offer VA loans at low rates for veterans and active military members enabling them to buy homes close to where they are based.  They offer a no down payment loan for the reasonable value of the property unless the lender requires one.

VA loans are guaranteed by the VA to help veterans protect their credit, avoid foreclosure, and make certain they have every opportunity to stay in their homes.  They can intervene to help home retention with options such as forbearances, loan modifications and repayment plans.  However, the best advantage about VA mortgages is their no down payment.

No down payment means the veteran doesn’t have to have a large payment at the beginning of their loan for their homes.  They still have to pay some fees but unless the lender doesn’t require a down payment, they will get their loan without a big payout at the beginning of their loan.

Of course, you have to pay attention to all the rules and do your do diligence before you’ll be authorized for a VA mortgage for the home of your choice.  Don’t forget to fill out all the paper work before submitting the application for the loan.  Nothing will stop the red tape faster than leaving blanks on the loan application.

According to Mortgage Bankers Association National Delinquency Survey, the rate for VA foreclosures in the last eight quarters has been the lowest measured of all loan types, even prime loans.  The VA’s Home Loan Guaranty Program makes it possible for veterans, active duty service members, and surviving spouses to affordable home loans at a very low or no down payment.  They also protect lenders if a borrower fails to repay a VA loan.

This same program is responsible for impact on homes or delayed mortgage payments caused by the oil in the Gulf States.  Because of the oil spill crisis, VA mortgage companies are urging lenders to extend “every possible forbearance” to veterans that have been affected.

Secretary of Veterans Affairs Eric K. Shinseki suggested they waive late payment charges and not report negative credit rating to credit bureaus.  So far, lenders have followed this example and have saved service members a ton of money. So, it pays to get a VA mortgage when any type of crisis happens.  After all the military does work hard to protect the United States and this is a little in the way of repayment.

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