VA home loans are a great way for those who have served in the military to obtain the funding they need to purchase a new home. The first step in obtaining VA home loans is to determine eligibility. In addition to military personnel, there are other people who may qualify for these types of government loans. There are certain civilians (U.S. citizens) who qualify for VA home loans due to their work with the United States government. Surviving spouses of those who died in service, died from a disability obtained as a result of military service and the spouse of a prisoner of war (POW) or service person declared missing in action (MIA) may be eligible for a VA home loan. The surviving spouse must remain unmarried in order to be eligible. Generally, those who served at least ninety days during war time or 181 days during peace time are eligible.
Those who wish to apply for a VA home loan can apply online through the ebenefits.va.gov website. There are many specific requirements that govern who is and who isn’t eligible for a VA loan, so you must take the time and perform your research to determine if you meet the requirements. Those questioning whether or not they qualify an access the United States Veterans Affairs office for information.
VA home loans enable those who qualify to purchase homes and property without putting a down payment on the transaction. Additionally, there are savings that can eliminate up to twenty percent of the total cost. The United State government created VA home loans to thank veterans for serving their country and the money is used to ensure that veterans who return home can enjoy the benefits of home ownership. The loans are offered without the need for a down payment because the Government acts as the securer for the loan. Essentially, the government indicates that that veteran is a trustworthy and credit worthy individual who will make good on the loan, therefore there is no need for a down payment.
There are income guidelines that must be met in order to qualify for VA home loans. This ensures that the person borrowing the money will have enough income to pay the mortgage. Though the down payment is removed, it’s important to realize that the potential homeowner must show income stability and will need to verify their income to the Veterans Administration. At least two years worth of income must be proved and verified in order to obtain a VA home loan. This is often accomplished through salary or W-2 forms. Other sources of income that can be used for documentation purposes include part time income, money earned from commissions, alimony, child support, payments for separation, retirement, Social Security Income (SSI), notes receivables, interest and dividends, money earned from rental properties and self employment earnings.
One VA home loan that needs to be taken into consideration is the VA Jumbo Loan. A VA loan allows eligible recipients to obtain loan amounts up to $417,000 for term lengths of 15, 25 and 30 years. Additionally there is up to 6% seller paid closing cost allowed and no mortgage insurance is required. With a VA Jumbo Loan, the borrower may qualify for a loan greater than $417,000. Those who seek a home that costs more than the VA home loan program allows should speak with the VA regarding qualifications for a VA Jumbo Loan.
Another benefit to VA home loans is that the loans have no prepayment penalty, indicating that if a homeowner chooses to sell his or her home, they may do so at any time and won’t face a penalty fee. VA home loans also enable borrowers to have a higher debt ratio than often seen with other loans. If you are interested in obtaining a VA home loan than speak with a Veteran’s Administration representative today.