December 10, 2018

VA Mortgage

Home ownership is a dream of many Americans. Unfortunately buying a home is a costly venture and for most people, if you suddenly are unable to pay your mortgage you lose your home to foreclosure.

VA Mortgage

But for service men and women the Veteran’s Administration provides a VA Mortgage program, designed to offer financial advantages that may make it easier to buy a home.

How the VA Mortgage Program Works

The VA Mortgage or Home Loan is available to all qualifying veterans and active military personnel, as well as their spouses.

Veterans interested in a home loan backed by the VA can work directly with a private lender. You must make sure the lender participates in the VA Home Loan. Your lender and real estate agent assist you in shopping for a home and in qualifying for a loan.

To be eligible for the VA Mortgage, the home you’re buying must be the home you’re going to live in most of the time. You will not be eligible for a VA home loan if your intention is to rent the house out to someone else or use it as a vacation or temporary home.

As valuable as is the VA Mortgage program, it is not a magic bullet. Applicants must still be credit worthy—your credit standing must be good and you must be able to substantiate income that can support a monthly mortgage. But there are some nice advantages once you do qualify.

VA Mortgage Advantages

Here are the key advantages to the program:

  • VA Mortgage is available to all veterans and active duty military people not just first time homebuyers as is often the case with other types of home loan benefit programs.
  • If you qualify for the loan you may be able to buy with no money down—a big benefit that helps keep more money in your bank account.
  • Should you lose your job or suddenly incur massive financial hardship, the Veterans Administration can step in to help—it is your loan guarantor. In the real world, if you experienced sudden financial hardship, your lender could foreclose on your home.
  • The VA Mortgage home loan exempts you from buying private mortgage insurance, or PMI. This additional cost is required of most home buyers. PMI insurance benefits the lender and helps offset costs should a home loan go bad. It’s not typically a lot of money, but the savings adds up.
  • Pay limited closing costs. Closing costs are those extra expenses many homebuyers automatically pay—sellers could pay if negotiated into the deal—that cover things like administrative and attorney’s fees associated with “closing” the deal.

Home ownership has been an American ideal for decades. And there may be no more deserving homebuyer than a veteran and his or her family who have given of themselves in service to the country.

To learn more about the VA Mortgage program available for Veterans and active duty military personnel, visit the VA Home Loans webpage [http://www.benefits.va.gov/homeloans/ ]. You may also be required to submit a Certificate of Eligibility to receive the VA Mortgage and other benefits available to you.

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