Thursday, December 26, 2013

Eligibility For Veteran Home Loan

By Harriett Crosby


Veteran home loan is a scheme that seeks to provide past and present service men with the opportunity to own homes. They finance their mortgages with benefits accrued from their days in the force. There is a criterion that is set for anyone who seeks to benefit from the fund. Special provisions are made for the members because of the circumstances under which they operate.

The requirements for eligibility include 90 consecutive service days during war. An alternative is 181 days when the army is not at war. Persons in the National Guard are required to have served for more than six years. A similar requirement is demanded of reservists. The duration of service allows an individual to have accumulated enough benefits to service the mortgage.

Persons whose partners or spouses died in the service are given special consideration. The law is also lenient to persons who were disabled while on duty and their dependents. A certificate of eligibility is obtained from the Department of Veteran Affairs. It details the aspects that qualify your application. The certificate is not mandatory at the beginning of the process.

Veteran Administration website avails the certificate of eligibility for applicants to fill and download. Private lenders have additional conditions for applicants to fulfill. They state that the credit rating, debt ratio and income must meet certain requirements. The scores are obtained by credit agencies. They also demand that for any applicant to qualify, he must not have been dismissed from the force due to misconduct.

VA mortgage presents a number of benefits compared to normal loans. The applicant is not required to deposit any amount as down payment in order to benefit. The provision is made to cater for the nature of work service men are engaged considering that they are always on the move. It might be difficult to build regular savings. The support of the government eliminates the need for private mortgage insurance. Competitive terms are provided.

Part of the income used to calculate the eligibility amount is the basic allowance for housing. This money can be used to offset the monthly bill. There are differences in the amount depending on number of dependents, job group and location. Persons who seek to offset the loans with a lump sum in between the term are not subjected to hefty fines. The fines charged by private lenders do not apply.

There are different financing options available to veterans because of their varied ideas about homes. USDA is administered by the Department of Agriculture to facilitate purchase of agricultural land and supporting homes in rural areas. Federation of Housing finances first time buyers and individuals seeking to improve on energy efficiency on their new homes. There is a category for competitive loans using a similar eligibility criterion like in the military.

Veteran home loan is easily closed if all the conditions have been met. Military leaders have endorsed the scheme to make it legitimate and better compared to others in the same league. They give you real value and excellent services.




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