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VA loans help you to buy your dream home

By JasonHolmes On February 28, 2011 Under VA Loans

A Veteran Administration or VA loan is mainly for those people who have been in military service for a minimum of 181 days or 3 months during the war and had also got the discharge from the service with an “honor” status. Other than the people who have directly served in the military, the people who spent at least 6 years with National Guard or Reserves and also the spouses of the military personnel who have got killed during their service may also be able to get the advantage of these loans.

Requirements for getting a VA loan

The VA loans are insured by the federal government and are available at low interest rates with no down payment requirement option. These loans also provide you with 100% financing. The interest rate on VA loans is based on several factors, like your credit history. However, the interest rates are generally highly competitive. The other factors that can affect your eligibility of getting a VA loan are your tax liens, collection on any debt and bankruptcy. However, the interest rate of VA loans is generally low in comparison to other mortgage loans. So, you may be able to save money on your interest payments. This can help you in making the other debt payments on your unsecured debts through Christian debt consolidation loans (if you are in any kind of financial problem).

The veterans who take out VA loans aren’t required to pay any PMI or private mortgage insurance against this loan and are able to enjoy 100% financing facilities. In order to get a VA loan the veterans required to give a funding fee of about 3.3% of the loan amount. This fee may later get added with the home loan. Another benefit of these loans is that the veterans are not required to pay any closing costs. The closing costs associated with the conventional loans which generally vary between 3% and 5% of the total value of a home loan get replaced by this funding fee.

There is another benefit too which is associated with the VA loans which the veterans can avail of. They may be able to enjoy streamlined refinancing. That is the veterans are allowed to refinance their existing loans into a low interest rate loan and they won’t even have to qualify again for the refinancing. This can mean that with the help of this the veterans may be able to avoid the home appraisals, income documentation and the verification of the income.

The maximum amount that can be borrowed through VA loans is USD$417,000. However, if a veteran wants to buy a house costing more than this amount, he will have to provide that amount as the down payment.

Thus, you can see that the VA loans offer various benefits at the same time. So, if you think that you are eligible for a VA loan, you can avail of one.

Jason Holmes is a regular writer with Debt Consolidation Care and is also a contributory writer with other financial sites. His expertise is woven around various aspects of the debt industry and with his e-books he tries to impart to people the different situations and simple solutions to get out of difficult situations. Some of his works include e-books like ‘Credit Score The Quintessential Therapy for a Happy Pocket’, Take Creditors and Collection Agencies to Small Claims Court’ and, My Story- From Depression To a Smile’.

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