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Do you qualify for a VA loan?

We all know that most of us need a mortgage to buy a home. We go to a lender and complete all the necessary paperwork and then we can buy the house, returning the mortgage money that they loaned us in monthly installments.

A VA loan, then, is a home loan that is guaranteed by the US government and for the use of US veterans, military members, current service members, and selected surviving spouses of members. Veterans can use this mortgage to purchase a single-family home or condominium, multi-unit properties, manufactured homes, or new construction property.

While it is the Veterans Affairs office that financially guarantees qualifying loans and who sets the rules on who can qualify and when, and sets the guidelines, the money doesn’t actually come from the government, but from any qualified lender (bank or other financial institution).

These VA Loans are intended to provide home funding for service members and their families without the worry of having to make a down payment like you do with other mortgages. If you don’t have to make a down payment, then more of your money can go toward paying the mortgage, and that’s the idea of ​​the loan.

The original law was passed by Congress in 1944, after World War II, and since then more than 20 million VA home loans have been issued. After a few amendments over the years, the scheme has been expanded and augmented to allow more service members to qualify and include more housing options for those members.

If you qualify for a VA loan, you are allowed 103.3% financing without private mortgage insurance, which is a huge savings compared to a traditional mortgage. You can also get 20% on a second mortgage and up to $ 6,000 for energy efficiency improvements to your home. Plus, a 0-3.3% VA financing fee can be added – again, much better than a traditional mortgage.

Being in the military is not an easy job, and it is good to know that once you are a veteran, there is help available to finance your property. Whether you’re still in service, a proud veteran of a fallen hero’s wife, the government has you covered with benefits when it comes to financing your home.

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