The United States Department of Veterans Affairs or simply VA provides various level of assistance to the military veterans and a VA home loan one of them.  This is offered as a mark of respect to the retired and current military personnel who have contributed towards the security of the nation. The unmarried windows of such veterans are also eligible to get this loan. It can be referred to as a type of mortgage loan that the US government offers to the military professionals to buy a home with ease. The noble intention behind this VA LOAN is to provide home financing assistance to older military veterans and enlisted members to invest in a property without the hassle of down payment.

Popularity of VA Home Loan

In the United States, VA loans are on of the best lending programs in the real estate market. One of the primary benefits of this home loan is the absence of the requirement for down payment and it has been attracting military home buyers since 1944.

How VA home Loans are Processed

·         Pre-qualification Criteria

The first process of securing a VA loan is identifying a reliable and trusted VA lender and checks the qualification criteria what purchase price you are eligible to buy. The major determinants will be your income, credit history, and all other financial records. You will get a quote based on your specific financial situation.

·         Pre-approval

The pre-approval of your loan is a serious step and it is applicable in all type of home loans, regular or VA. As a part of this process, a licensed VA underwriter will examine your financial documents to determine your eligibility for a VA loan. If the underwriter approves your file you will receive a pre-approval letter which signifies that you are a serious candidate to buy a home. You will earn trust of real estate agents and sellers which will greatly help you in the home buying process.

·         Putting in an Offer

After you find the right agent and the right home, it is time to negotiate with the seller whom has accepted your offer. Remind the seller that VA no longer requires the seller to pay for your closing costs.

·         The Appraisal

Once you have opened escrow on your new home, the lender will order an appraisal for the property you are buying. A professional will then inspect the home and its real market value. If the value of your house comes lower than the agreed upon sales price you then have the opportunity to renegotiate with the seller. If the seller refuses to lower the purchase price to match the appraised value, the difference will need to be paid by the veteran.

·         Closing

When everything is completed, you will be closing the loan. This stage involves the singing of the legal papers and receiving the key to your new home.

VA Loan Facts

·         You can enjoy the benefit of VA entitlement again and again till the time you complete the repayment.

·         VA loan is for a variety of homes such as single family homes, condos, multi-unit properties etc.

·         You can get a VA loan if you want to make the house as your primary residence. You cannot use it to purchase a vacation house or for the purpose of investment. Even if you buy a multi-unit property, you will require living in one of the units. However, there are some exceptions followed in this regard which can be best explained to you by an expert VA lender.

VA Occupancy Exceptions

·         The VA also gives permission for intermittent occupancy to the military members who have a history of staying in different parts of the country while on duty. As there is no proof of any primary residence with the military members due to a job transfer, they can get an extension of this occupancy period.

·         The spouse of a military professional is allowed to complete the occupancy requirement when her husband cannot fulfill it due to deployment in other places.

Government Guaranteed

An interesting fact about VA home loan is that the United States Department of Veterans Affairs guarantees to the loan. This means if you have a VA loan, the government will cover up to the quarter of the loan amount. This guarantee provides confidence to the lender and helps military members to get the loan in best terms and rates.

VA Funding Fee

Standard VA loans comes with a funding fee which helps keep the program running successfully. This fee is for both purchase and a refinance VA loans. It can be added to your total loan amount so it is not directly cash out of your pocket. Those who have some disability-related conditions will be exempted from this fee. This will be shown on your Certificate of Eligibility. Moreover, the surviving spouses will also be refrained from paying this fee.

There is no prepayment penalty associated with VA loan. You can make the payment any time you want. The VA offers a loan with a low-interest rate in a consistent manner to help the veterans.

Duration of a VA Loan

The VA LOAN can be secured for the highest period of 30 years. You can flexibly choose a fixed mortgage repayment rate or an adjustable mortgage rate options. Under the fixed rate, your loan interest rate will be the same throughout the duration of the loan while under the adjustable rate, the interest will be changed monthly or annually depending on the loan terms.

Final Opinion

A VA loan puts an end to concern of all the veteran military home buyers in the United States. No doubt the VA home loan program has been helping out veterans and active duty military home buyers to secure a home with comfort.

The process of securing a loan can be difficult, whether it is a VA LOAN or a conventional loan. So, getting the help of an expert VA lender is a must for potential homeowners.