VA loans, also called Veterans Affairs mortgages, are in high demand. These types of loans are made through private lenders to veterans of the United States armed forces as well as those on active duty. They are guaranteed by the Department of Veterans Affairs, and are therefore a low risk for lenders. VA loans for veterans help make it possible for servicemen and servicewomen to afford housing for themselves and their families.
Potential borrowers can obtain a certificate of eligibility online, but it isn’t necessary to begin the application process. The lender can assist borrowers with obtaining this document along the way. Veterans, active members of the military, members of the National Guard, and even reservists can apply for veterans’ home loans. The widows or widowers of servicemen and servicewomen who died in combat, on active duty, or due to a service-related injury are also eligible to apply for VA loans. For those on active duty or reserve and those in the National Guard there is a minimum period of service required for eligibility, which can vary depending on the nature of service. For example, the required minimum period may be shorter during war time, or if the applicant in question spent time on foreign soil.
There are many benefits to pursuing VA loans for veterans. Perhaps the most significant one is that there is no down payment required with a VA loan. Other fees associated with obtaining a loan still apply, however fees are typically lower than they would be for other types of loans. In some circumstances the fee may even be waived, for example if the applicant receives compensation for a disability. VA loans also don’t require mortgage insurance, unlike FHA loans and other types of conventional loans. This significantly lowers the monthly payment that would be required on the loan. There is no limit to the amount of money a veteran can borrow through a VA loan, only on the liability the Department of Veteran’s Affairs will guarantee. Another benefit of a VA loan is that there is no minimum credit score required to apply. The lender will take the whole financial picture of the borrower into account, but a low score alone will not preclude an applicate from consideration.
VA loans for veterans are a great solution to help veterans and active duty military servicemen and servicewomen afford to buy homes. With no required down payment, no minimum credit score, and lower monthly costs, VA loans are an especially useful option for veterans who would not otherwise be able to afford a conventional loan.