HTML Ready Article. Click on the "Copy" button to copy into your clipboard.
By: Philip Georgiades
If you have served in the military, you are likely eligible for a government guaranteed VA home loan. Backed by the U.S. Department of Veterans Affairs, a VA loan is easy to get (when compared to a conventional loan).
These loans were developed to offer long-term, affordable home financing to eligible American veterans or their surviving spouse (except in cases of remarriage). The VA home loan program's basic intent was to provide military service-members easy access to home financing when private sector financing was not typically available, and to aid veterans with the ability to purchase property with no money down.
There are four distinct VA loan types. Those are the VA Vendee loan, VA $0 down purchase loan, VA Refinance, VA Interest Rate Reduction Loan. All VA loans are guaranteed by the VA.
VA Vendee Financing is unlike the other 3 VA loans. It is used to purchase investment property as opposed to property the borrower will occupy and the only VA loan open to civilians. Offered to veterans and non-veterans, the VA Vendee loan is used to aid with the purchase of multi-family REO income producing properties.
The VA purchase can be financed with as little as O% down, and a non-owner occupied VA Vendee purchase can be financed with as little as 5% down. The VA IRRL is used for eligible borrowers to refinance from a VA loan into a new VA loan with a lower interest rate and/or payment. The VA refinance allows a borrower to cash out equity and/or rehab or remodel a property. For the VA refinance, the original loan can be any type of loan or a property owned free and clear.
All VA loan types will allow for $6,000 of energy efficient improvements to be financed into the loan.
All refinance types and the $0 down VA purchase require the borrower to certify that they intend to occupy the property as their primary residence. This means the Veteran/borrower will state that they plan on living (or currently do live) in the property as thier main home. However, there is also no formal time frame occupancy requirement with a VA loan. Many times veterans struggle in cases where they are unable to sell their current home and desire to rent it out and buy another home. Because of this, VA loans allow you to use the benefit more than once. However, the $0 down VA home loan is intended to be used for a persons primary home, and you must request and qualify to have more than 1 VA loan at a time.
VA loans are almost always the best way to finance a home. We hope this guide will help you better understand the VA loan process and help you determine which VA loan is the right one for you.
Author Resource:->??Find out why VA home loans are superior to all other mortgages. To learn more about VA loans, visit VA HLC @ http://www.VAHLC.org - Author Philip Georgiades San Diego VA HLC.
Article From Article Directory | Articles Online | Submit article
Source: http://www.articlesurge.com/Art/33229/226/What-Financial-Use-Will-Qualify-For-A-VA-Loan.html
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.