What Is A VA Loan?
Buying a new house is a thrilling experience, but one that can also be intimidating if you’re not completely prepared for the process and commitment. If you have decided to buy a house, the next step is to apply for a loan. There are so many types of loans, lenders and loan repayment plans that it this can be a tricky part of the home buying process. If you are a qualified veteran, this process has been made much easier and more affordable for you through the VA’s loan guaranty program.
What is a VA Loan?
A VA Loan is available to both active and ex-military. It is not actually the loan itself, but a guarantee on the loan you want to take out from a private lender. When you apply for a loan, the VA will guaranty 25% of the loan, which means they will pay that amount of the loan if you default on your payments and go into foreclosure. What this means for you is that you don’t have to put a down payment on the house. It also means your monthly mortgage rate will be lower because you won’t need Premium Mortgage Insurance.
With a VA guaranty you will also get a very competitive interest rate from your lender. In most cases, you can even negotiate to get a smaller rate than if you were applying for a traditional loan.
Who Qualifies?
Any veterans who served time in WWII, Korea, Vietnam, and the Gulf during wartime for 90 days and received an honorable discharge are qualified for a VA loan. If you served in those countries after the war in peacetime, you qualify if you were there for 181 days. For active duty service personnel, you qualify after 181 days of continuous regular duty. In all of these situations you have to have served the fulltime and been discharged under honorable conditions.
An exception to this rule is if you were discharged early for a service-related injury. Certain non-military individuals also qualify, such as unremarried spouses of veterans who died in service, went missing in action or were a prisoner of war. If you have any questions about qualifications, the VA website can assist you.
Ever since the VA guaranty loan program went into effect in 1944, millions of veterans and their families have benefited. It has made the dream of homeownership a reality by making it affordable both up front and with low annual interest rates.
How to Get Started with a VA Loan
Getting started is easier than it’s ever been. Just fill out our free and secure 1-minute quote request form and start comparing the best VA rates today.
What Is A VA Loan? | VA Loan Requirements | VA Home Loan Refinance | VA refinancing
