VA Mortgage Loan

VA loans are one way this nation has shown its appreciation since WWII for those men and women who have served in all branches of the military to secure the freedom all Americans enjoy. Veterans eligible for this type of assistance include members of Selected Reserve, active duty service personnel, and spouses of deceased veterans who have not remarried. Once an individual finds property he or she wishes to buy, they can find a lender and apply for a VA mortgage loan. Part of the application is the presentation to the lender of discharge or separation papers related to the Veteran's last period of service and/or a Certificate of Eligibility. The property is then appraised and an estimate of the property's value determined and the application approved or denied.

The Veteran's Administration (VA) ensures that all veterans applying for VA mortgage loans are given equal opportunities for loans, regardless of race, gender or origin as long as they are financially able to pay back the amount. Of particular importance to most veterans is the fact that a down payment is not required, and there are limits on the closing costs. These loans are assumable, but it is the responsibility of the veteran to be sure the original amount is paid off or they will be responsible for it later. The interest is negotiable, fixed for the life, and there is a long amortization period so payments are kept as low as possible. Veterans have the right to prepay without penalty, and leniency is extended to veterans who experience periods of financial difficulty.

Once a veteran has shown he or she is eligible for a VA mortgage loan, they have to show that they are going to occupy the property. A veteran can not buy a house for someone else unless it is a multiple family (up to four units) dwelling where the veteran will occupy one unit and someone else the others. Veterans applying for VA home loans have to meet the same criteria as any other home mortgage applicant, in that they must have an income that will allow them to meet the note payments. Also, it is crucial to have a good credit rating.

Cooperatively owned property or property that is located in another country does not qualify individuals to receive VA mortgage loans. An individual can get a VA mortgage loan in one state for property in another if the lender agrees to it. Those veterans not eligible are WWI veterans, those who took active duty training but were separated before serving their term, National Guard or Coast Guard veterans. Under the recently passed Veterans Benefits Act, the maximum amount now allowed is $359,650, refinancing is available with a VA mortgage loan, and veterans can cash out up to 90% of the value of the home for consolidating debt, home improvements, or whatever the veteran wishes to do with it. Respect for soldiers is mentioned in the Bible and is part of the Christian tradition and duty to respect our military. "All these the sons of Jediael, by the heads of their fathers, mighty men of valour, were seventeen thousand and two hundred soldiers, fit to go out for war and battle" (1 Chronicles 7:11).

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