In 2013, the mortgage program of the Us department of Veteran Affairs (Va) marked its 70th anniversary. It was one of the strongest years for Va loans since their introduction in the market. Some 630,000 new loans were guaranteed by the department in 2013. Find out more about these products and their features, benefits and drawbacks and check whether you qualify.
Loan Basics
A Short Guide to the Va Mortgages
The Va mortgages are home loans backed by the department of Veteran Affairs. The department does not issue them. The loans are ready from varied distinct lenders participating in the program. They have similar features compared to their approved counterparts, but there are some illustrious differences as well. These home loans are ordinarily designed for veterans and active duty personnel, but other home buyers may be able to qualify as well.
Eligibility
Veterans and active duty personnel are automatically eligible for Va mortgage loans. National Guard and retain members can also qualify if they meet a set of criteria. These are at least 90 days of active aid completed after 1990 and honorable discharge, retired list placement, exchange to the Standby retain or Ready retain after dismissal as honorable or continuing aid in the superior Reserve. Surviving spouses of veterans, who died, went missing in operation or were taken as prisoners of war, can also qualify. They have to have remained unmarried or may have remarried, but under inescapable conditions in order to be eligible for such a home loan.
Since the loans are ready from approved lenders, applicants have to meet general affordability criteria. These criteria are based on income, debt-to-income ratio and prestige score.
Loan Features
The Va mortgage loans come with varied amounts. The maximum loan estimate is 7,000, but this limit is flexible in areas with high property prices and in special circumstances. The loans want no down payment. At the same time, home buyers can put down any estimate which they deem fit. There is a funding fee which is calculated as a percentage of the loan amount. It is 2.15% for first-time home buyers manufacture no down payment. When a down payment of 10% is made, the percentage drops to 1.25%.
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