VA Home Loans
Frequently Asked Questions On VA Home Loans:
VA Home Loans is by far the best mortgage loan program. VA Home Loans are only available for members of the United States Armed Services with a Certificate of Eligibility from the Department of Veteran Affairs. Those with a Certificate of Eligibility from the United States Department of Veteran Affairs are eligible for a VA Loan which is a residential loan offered by VA approved mortgage lenders where no down payment is required and 100% financing is available. VA approved mortgage lenders offer 100% financing for home buyers who are veterans with Certificate of Eligibility because the VA loans are insured and guaranteed by the Department of Veteran Affairs in case of default by the VA loan borrower. Due to the guarantee by the Department of Veteran Affairs, the risk factor is minimized and VA approved mortgage lenders can offer 100% financing at very low mortgage rates with no mortgage insurance premium required. VA mortgage rates are lower than conventional mortgage rates and by far is a better deal than FHA insured mortgage loans due to no mortgage insurance premium requirement.
Main Advantage Of VA Home Loans
Three major advantages of VA Home Loans is that it does not require a down payment. Two mortgage loan programs that do not require down payments are VA Home Loans and USDA loans. Every other mortgage loan program require down payments. FHA requires minimum 3.5% down payment, conventional loan programs require 3% down payment for first time home buyers and 5% down payment for seasoned home buyers, jumbo mortgage loan programs require 20% down payment, investment home loans require 15% down payment, second home loans require 10% down payment, and non-warrantable and condotel financing require 25% down payment. The second major advantage for VA Home Loans is that there is no mortgage insurance premium required. All loan programs with less than 20% down payment require private mortgage insurance. VA loan an exception. There is a VA loan funding fee but the VA loan funding fee can be rolled into the VA loan. The third advantage of VA Home Loans is that they have the lowest interest rate over any other mortgage loan program due to the little risk inherited by the VA mortgage lender due to the government guarantee from the Department of Veteran Affairs in the event the VA mortgage loan borrower defaults on his or her loan.
Type Of Homes Available With VA Home Loans
A home buyer can use a VA loan to purchase a single family detached home, a condominium, a new home from a home builder, a manufactured home, a one to 4 unit property. Both home purchase VA loans and refinance mortgage VA loans are available. Veterans with a Certificate of Eligibility by the United States Department of Veteran Affairs are eligible to use a VA home loan to purchase an owner occupant property in the United States as well as a territory of the United States such as Puerto Rico, Guam, or the United States Virgin Islands.
VA Home Loan Guidelines
VA Home Loans have VA mortgage lending guidelines with regards to credit, credit history, credit scores, and debt to income ratios. Waiting period after a bankruptcy is two years to qualify for a VA Home Loan. For deed in lieu of foreclosure and short sales, there is a mandatory two year waiting period after the recorded date of the deed in lieu of foreclosure and a two year waiting period after the date of the short sale. There is a three year waiting period after the recorded date of a standard foreclosure to qualify for a VA Loan.