Finding affordable mortgage is not easy nowadays especially for the military veterans. However, things have been better for the servicemen since the introduction of the veteran home loan program. These are special loans given to those military personnel to help them buy homes.
Due to the uniqueness of the loan, there is a selection criterion used to identify the beneficiaries. For instance, you must have served for 181 days of service days during peacetime or 6 years in the National Guard. The other way to qualify is if you served for 90 successive days during wartime (e. G. Gulf War, 24-month rule, Vietnam, Korean War and World War II).
As far as the government is concerned, the conditions listed above are what you must meet to get the Certificate of Eligibility. The government demands aside, you also need to meet the lenders conditions. For example, you need to ensure that you have a stable income and that you have no unpaid debts
If you meet the stipulated conditions (i. E. By the bank and the government), you stand to benefit a lot form these loans compared to the conventional ones. First, the Federal government is your guarantor. Secondly, you do not have to worry about down payment as is the case when applying for other mortgage types. This makes it easier for the military personnel (who are always on the move) to own a home without necessarily having to save first.
The other benefit is the absence of private monthly mortgage insurance. This requirement is mostly used by the banks to counter defaulters. However since these loans are backed by the federal government, there is no need for insurance. Other advantages include lower interest rates and the use of you house allowance to service the mortgage. You are also free to pay off your mortgage even earlier without worrying about the pre-payment penalty.
The loans are also flexible in terms of usage. For instance, you could use them to buy a new home (even a manufactured one). Alternatively, you could improve the installations at your place or build a new home using the same loan. Better still, servicemen can buy homes and refurbish with the money.
Additionally, the application process is never a demanding one. Indeed, it is simpler than the regular application. First, you identify an approved lender as well as the house you want to buy. The next process is to get your Certificate of Eligibility of course after signing the Purchase Agreement with a qualified real estate agent.
Once you have acquired the Purchase Agreement and a Certificate of Eligibility, you are cleared to approach the lender. They will in most cases look at your financial history with a keen interest on you banking activities. Provided you meet the lenders requirements, you are granted the veteran home loan and assigned a title company to do closing. During closing, the lending institution (via a title company) manages the transfer of the home to ensure you get your property faster and smoothly.
Due to the uniqueness of the loan, there is a selection criterion used to identify the beneficiaries. For instance, you must have served for 181 days of service days during peacetime or 6 years in the National Guard. The other way to qualify is if you served for 90 successive days during wartime (e. G. Gulf War, 24-month rule, Vietnam, Korean War and World War II).
As far as the government is concerned, the conditions listed above are what you must meet to get the Certificate of Eligibility. The government demands aside, you also need to meet the lenders conditions. For example, you need to ensure that you have a stable income and that you have no unpaid debts
If you meet the stipulated conditions (i. E. By the bank and the government), you stand to benefit a lot form these loans compared to the conventional ones. First, the Federal government is your guarantor. Secondly, you do not have to worry about down payment as is the case when applying for other mortgage types. This makes it easier for the military personnel (who are always on the move) to own a home without necessarily having to save first.
The other benefit is the absence of private monthly mortgage insurance. This requirement is mostly used by the banks to counter defaulters. However since these loans are backed by the federal government, there is no need for insurance. Other advantages include lower interest rates and the use of you house allowance to service the mortgage. You are also free to pay off your mortgage even earlier without worrying about the pre-payment penalty.
The loans are also flexible in terms of usage. For instance, you could use them to buy a new home (even a manufactured one). Alternatively, you could improve the installations at your place or build a new home using the same loan. Better still, servicemen can buy homes and refurbish with the money.
Additionally, the application process is never a demanding one. Indeed, it is simpler than the regular application. First, you identify an approved lender as well as the house you want to buy. The next process is to get your Certificate of Eligibility of course after signing the Purchase Agreement with a qualified real estate agent.
Once you have acquired the Purchase Agreement and a Certificate of Eligibility, you are cleared to approach the lender. They will in most cases look at your financial history with a keen interest on you banking activities. Provided you meet the lenders requirements, you are granted the veteran home loan and assigned a title company to do closing. During closing, the lending institution (via a title company) manages the transfer of the home to ensure you get your property faster and smoothly.
About the Author:
Our veteran home loan specialists are ready to offer you financial advice at www.veteranhomeloanspecialists.com. For a consultation, visit the relevant page on http://www.veteranhomeloanspecialists.com.
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