Veterans loans, also known as VA loans, are available to men and women who have either served during wartime, or who have served a certain length of time during peacetime. Veterans loans are guaranteed by the Department of Veterans Affairs (VA).
The process for getting a veterans loan is similar to that of getting a conventional loan. You first find the home you want, and then have the home appraised by the VA. You then shop around to various lenders to find the best deal. Once you've found a lender that you're comfortable working with, The lender then submits your loan application to the Veterans Administration while othe aspects of the loan process are proceeding.
Veterans loans offer a number of advantages over conventional loans. One of the most attractive advantages is that veterans loans do not require down payments in most circumstances. You can also borrow up to 100% of the value of the home (the value is determined by the VA). And you can borrow up to $203,000 for the home.
Veterans loans also offer the flexibility of negotiating interest rates with the lender, no monthly mortgage insurance, a limitation on closing costs, the ability for mortgage assumptions, and no prepayment penalties. The Veterans Administration also offers financial counseling to veterans who are experiencing financial difficulties.
Veterans loans feature of choice of payment plans. You can choose a traditional fixed rate mortgage, a graduated payment mortgage, or a growing equity mortgage, which allows you to increase your payments as you go along, resulting in an early payoff of the mortgage.
Veterans loans can also be used for a number of purposes: to buy a home, townhouse, or condominium; to build a home; to make home improvements; to refinance the home loan; or to buy a manufactured home and/or a lot.
Eligibility for veterans loans depends upon the type of service. For those who served during World War II, the Korean War, the Viet Nam war, or the Persian Gulf war, a minimum of 90 days active service is required. For those who served during peacetime, a minimum of 180 days of service is required. Those who served in peacetime after September 7, 1980 must generally have two years of active duty.
Members of the National Guard who have served 6 years may also be eligible.
For more detailed information about veterans loans, please visit the VA's loan guarantee site at http://www.homeloans.va.gov/.
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