VA Home Loans for Veterans- A true boost and boon
Every year politicians and candidates only numerous empty promises to veterans, like excellent care in all spheres ranging from health care to support for their families, and helping them get the benefits as well as opportunities that they have earned. However, there are still a few schemes and initiatives that have genuinely helped veterans and their families lead better lives, one of which is the Home Loan Guarantee provided by the Veterans Affairs of the United States.
Benefits that VA Home Loans offer
Under this scheme, the federal government does not actually lend you any money- it just guarantees a part of the loan, which you would be receiving from your usual commercial lender. However, the upside here is that it reduces the risk for the lender, thus getting you a better deal.
- Little or no down payment: With options where you can even finance 100% of your mortgage from a VA loan, down payments are no longer a worry if you are getting your home through one.
- No need to get any form of MI or mortgage insurance: With no requirement for any form of insurance for your mortgage, the amount that you have to pay every month comes down.
- No penalties for early repayments: If you wish to pay off the mortgage loan that you had from the VA earlier than scheduled, it will not incur any penalties.
- Flexibility in terms of underwriting and liabilities: Unlike other conventional programs, the credit, income underwriting and asset of VA is quite forgiving.
- Help if you default of fall behind: In case you fall behind on your payments or are unable to make any, then there are additional options and measures that the Veterans Affairs can advice you on to better handle the situation and get you out of it.
You may be eligible even with bad credit
One of the best things about these loans is that just an okay credit score will get you through it. However, that does not mean that everyone who will apply for it will get a VA loan, irrespective of the credit history. The VA does not have any minimum score that you must have for a loan, yet the mortgage lenders still follow some pattern or limit. Generally, applicants whose FICO scores exceed 620 can get a loan provided they come with enough assets and incomes for covering their repayments.
Qualifying for a VA Loan
When you apply for a VA Loan Guarantee, then your first priority will be to obtain a COE or a Certificate of Eligibility. Getting one of these is not that complicated- you can either get it online on your own or leave it on your lender to get one.
There are also other categories apart from veterans which may be eligible for one- going through the website of the VA will give you a better picture of the same and thus help you decide if it is the best path for you to get your own home.