A VA home loan is one of the most attractive home financing options available. For veterans, military personnel, and their families, a VA loan offers substantial benefits that are generally not available with more conventional loans. If you are eligible for this loan option then it will likely be highly worthwhile to learn about what steps you need to take in order to apply. Below is a brief description of a VA loan, who qualifies for it, and how to go about applying for one.
VA Home Loans O’Fallon IL
VA home loans are created by private lenders but guaranteed by the Department of Veteran Affairs (VA) as a home loan assistance program for veterans, military personnel, and some military spouses. VA loans are available as purchase loans, streamline refinance loans, and cash-out refinance loans. Because these loans are backed by the VA, the actual terms of the loan tend to be much more flexible and attractive to borrowers than conventional loans. As with conventional loans, VA loans are available on a fixed-rate and adjustable-rate basis. The actual loan amount available depends on each applicant’s eligibility.
Benefits of VA Home Loans
Perhaps the biggest benefit of a VA home loan is that it requires little to no down payment nor is there a private mortgage insurance requirement. With a VA home loan you can also prepay your mortgage without incurring a penalty. Additionally, interest rates are highly competitive, closing cost is limited by VA regulations, and the VA offers assistance to borrowers if they find themselves in default because of temporary financial difficulty. Because of these benefits, the VA home loan assistance program allows qualified applicants to buy a home sooner than they would otherwise be able to with a more conventional mortgage.
As with conventional loans, VA home loans still require applicants to have sufficient income and a decent credit rating. A VA home loan can only be used to finance the purchase or improvement of a home that will be your primary residence. Finally, applicants must be able to provide a valid Certificate of Eligibility (COE). This document is extremely important as it essentially proves your status as a veteran, active military member, or National Guard or Reserve member. Certain surviving spouses are also eligible for VA home loans as are U.S. citizens who are veterans of the armed forces of any country that was a U.S. ally during World War II. Complete eligibility requirements can be found on the VA’s website.
Applying for a VA Loan
The easiest way to apply for a VA loan is to talk directly with a private VA-approved lender, such as Gershman Mortgage. We can help you obtain your COE, ensure you have all the necessary paperwork in order, and assist you in the process of qualifying for a VA home loan. Contact us today to speak with a mortgage professional!