Here is where the Veteran Home loan program excels over competing loan products. VA mortgages allow for a home to be financed in one loan up to 100% of the acquired home’s value. In addition, the seller is allowed to pay most-if not all-of the closing costs and prepaid items. This means little to no cash out of pocket. Most housing types are eligible: residential homes, condominiums, townhouses, manufactured homes, new construction and even 1-4 unit rentals (additional conditions apply). If lack of available funds is the issue preventing home ownership, VA Loans offer the solution.

Still, very few veterans take advantage this type of mortgage. It is a shame that more veterans don’t familiarize themselves with this benefit. The interest rate is the same or lower than most conventional financing. The mortgage products offered range from 10-30 year fixed rate mortgages, ARM’s (adjustable rate mortgages), and even temporary buy-downs are allowed. The eligible loan amount is the same as a conforming conventional loan-currently at 417K. In addition, VA financing can be used for refinancing existing homes. As you can see, the product isn’t the problem. The product is as competitive as most that is available. The lack of awareness is the problem. Ask your mortgage broker or lender to explain your options. If they don’t offer the VA mortgage, then find someone who does. We at Venture Development offer VA loans. In the end, you may end up with a conventional or FHA loan if these products are better suited for your situation. Until you compare mortgage options you won’t know what is right for you.

Another advantage of a Veteran mortgage is the flexibility found within the underwriting process. Employment history is very flexible. Credit for all types of mortgages is more stringent today than in the past. That being said, the focus is going to be on the last 12 months of payment history. Underwriting can use alternative sources of credit such as utility bills and cancelled checks if the credit depth is weak. A prior BK or foreclosure is also forgivable. Depending on the type of bankruptcy, you would be eligible one to two years following your discharge date if you’ve reestablished positive credit.

Who is eligible to obtain this loan? Many veterans and even some of their spouses can obtain a veteran mortgage. Here is a very short list of who is eligible: Veterans who served during WWII, Korean Conflict, Vietnam War, or Persian Gulf Conflict AND who have served 90 days of active duty, or have been honorably discharged, or were National Guard/Reservists activated. Veterans with service during Peacetime periods and active duty military personnel must have had more than 181 days of consecutive active service before becoming eligible. Reservists and National Guardsmen are eligible after 6 years of enrollment in a selected service. There is even a program for non active duty spouses. Consider this: an un-married spouse of a veteran who died while in service or from a service connected disability or a spouse of a service person who is considered MIA/POW for at least 90 days are also eligible.

Veterans have spent a part of their live defending our way of life. Freedom isn’t free. Why shouldn’t they be allowed to participate in the very same American Dream that they selflessly protected for you and me. The VA loan was created to help those that have helped all of us. Collectively we can spread the word about the benefits of this unique type of loan.

Minnesota Mortgage Broker-Venture Development 952-285-4319 MN mortgage broker at my website at ventureloanapp.com John Mazzara sells Minnesota real estate in the Twin Cities(Minneapolis/St Paul), MN with RE/MAX 952-887-1290 MN real estate at my website at selling.mn We offer mortgage loans programs for First time buyers, investment property, refinancing & consolidation of debt

Get in Touch with the VA to Know Your Loan Legibility

There are requirements that an availer should consider to be entitled to home loans. Veterans who have served 90 days or more during the war and who are honorably discharged are entitled to avail of such loans. For peacetime veterans, their service should start at 181 days before September 7, 1980 or have a minimum of two years after this date in order to qualify for a loan. They should also be honorably discharged.

Those who served in the Reserves and National Guard with a minimum of six years and are still in the service or honorably discharged are also eligible for the loan. Those whose spouses are casualties in time of service and did not marry are also entitled to the loan. Inquire from the VA office if you have further questions.

Obtaining Certificate of Eligibility

This should be done first before you can apply for a loan. Visit the Veterans Administration website and learn of the necessary documents you need to accomplish, such as the VA Form 26-1880. Once you have filled out this form, send this to the VA together with your DD Form 214 that documents your service past the year 1979. However, this is not a guarantee that your loan will be easily approved since you will have to be evaluated about your financial capability to repay the loan. Veterans can ask their lender and obtain from them an Automatic Certificate of Eligibility (ACE) coming from the VA that provided enough information.

Loan Restrictions on VA

Use your VA loan for financing your home within the US territories only. VA home loans can also be used in improving and refinancing your home.

Funding Fee

A corresponding fee of 2% – 2.75% of reservists will be charged to the total loan amount to close your VA, which can be comprised in the loan amount. If you choose to have a down payment of 5%, this will free up your fees more.

Benefits of VA Loans

A 100% financing scheme is available for veterans without any down payment. Since VA loans are guaranteed, a veteran does not have to pay for Private Mortgage Insurance (PMI), giving a savings of more than $50 a month. Prepaying this loan will save you from penalties; interest rates are also competitive.

Disadvantages

VA loans usually take longer to process compared to other type of loans. Because of automation, processing takes relatively shorter than it used to. Sellers also need to pay closing costs when dealing with home prices for sale.

Greg Shuey works for a Utah mortgage company called Utah Financial. Together with Chase Gunderson, we specialize in Veteran Loans and many other types. We are here to educate and help you along the way when researching and obtaining one of our Utah Veteran loans.