Securing a cheap mortgage loan has become default currently. Without much hope were those in the military, with reference to the retired or those returning from wars overseas. Fortunately, the government came to their aid and established a special home loan. Known as the veteran home loan, it is government guaranteed and enables military servicemen to have decent abodes. There are however various important facts regarding these loans that one should know of prior to applying for them.
The fact that this is a unique loan means that there are unique requirements too. For example, you cannot qualify for it unless you were active for 90 consecutive days during wars like World War II, the Korean War, the Gulf War, the Vietnam War and the 24-month rule. Alternatively, you must have served as a military reservist for at least six years. The other way to qualify is if you served for 181 days when there was no war.
Now, the above listed conditions are from the government (guarantor) side in order to qualify for the Certificate of Eligibility. However, the lenders do have additional requirements. For example, most of them would look into your Credit history and ensure that you have enough money to repay the loan.
Since these loans are guaranteed by the federal government, they are more advantageous the traditional ones. The fact that the government provides guarantee aside, these loans do not require a deposit. This feature alone makes it the best option for the returning servicemen since they do not have to save money to get the loan.
The other benefit is the absence of private monthly mortgage insurance. This requirement is mostly used by the banks to counter defaulters. However since these loans are backed by the federal government, there is no need for insurance. Other advantages include lower interest rates and the use of you house allowance to service the mortgage. You are also free to pay off your mortgage even earlier without worrying about the pre-payment penalty.
The other feature which makes the loans even better is the diversity found in the application. The uses range from building of homes to buying or refurbishing of others. You can even use the money to buy a mobile home. Alternatively, you can use the loan in improving energy installations in your house.
Unlike most loans where you have to go through a demanding process, veteran loans are simple to get. From the time you choose a lender to when you negotiate the Purchase agreement, everything looks straight forward. In fact, and as long as you meet the requirements for a certificate of eligibility, you are always granted success.
Once you have acquired the Purchase Agreement and a Certificate of Eligibility, you are cleared to approach the lender. They will in most cases look at your financial history with a keen interest on you banking activities. Provided you meet the lenders requirements, you are granted the veteran home loan and assigned a title company to do closing. During closing, the lending institution (via a title company) manages the transfer of the home to ensure you get your property faster and smoothly.
The fact that this is a unique loan means that there are unique requirements too. For example, you cannot qualify for it unless you were active for 90 consecutive days during wars like World War II, the Korean War, the Gulf War, the Vietnam War and the 24-month rule. Alternatively, you must have served as a military reservist for at least six years. The other way to qualify is if you served for 181 days when there was no war.
Now, the above listed conditions are from the government (guarantor) side in order to qualify for the Certificate of Eligibility. However, the lenders do have additional requirements. For example, most of them would look into your Credit history and ensure that you have enough money to repay the loan.
Since these loans are guaranteed by the federal government, they are more advantageous the traditional ones. The fact that the government provides guarantee aside, these loans do not require a deposit. This feature alone makes it the best option for the returning servicemen since they do not have to save money to get the loan.
The other benefit is the absence of private monthly mortgage insurance. This requirement is mostly used by the banks to counter defaulters. However since these loans are backed by the federal government, there is no need for insurance. Other advantages include lower interest rates and the use of you house allowance to service the mortgage. You are also free to pay off your mortgage even earlier without worrying about the pre-payment penalty.
The other feature which makes the loans even better is the diversity found in the application. The uses range from building of homes to buying or refurbishing of others. You can even use the money to buy a mobile home. Alternatively, you can use the loan in improving energy installations in your house.
Unlike most loans where you have to go through a demanding process, veteran loans are simple to get. From the time you choose a lender to when you negotiate the Purchase agreement, everything looks straight forward. In fact, and as long as you meet the requirements for a certificate of eligibility, you are always granted success.
Once you have acquired the Purchase Agreement and a Certificate of Eligibility, you are cleared to approach the lender. They will in most cases look at your financial history with a keen interest on you banking activities. Provided you meet the lenders requirements, you are granted the veteran home loan and assigned a title company to do closing. During closing, the lending institution (via a title company) manages the transfer of the home to ensure you get your property faster and smoothly.
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