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 available from varied dissimilar lenders participating in the program. They have similar features compared to their accepted counterparts, but there are some famous differences as well. These home loans are commonly 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 preserve members can also qualify if they meet a set of criteria. These are at least 90 days of active service completed after 1990 and honorable discharge, retired list placement, replacement to the Standby preserve or Ready preserve after discharge as honorable or continuing service 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 safe bet conditions in order to be eligible for such a home loan.
Since the loans are available from accepted lenders, applicants have to meet normal affordability criteria. These criteria are based on income, debt-to-income ratio and reputation score.
Loan Features
The Va mortgage loans come with varied amounts. The maximum loan amount is 7,000, but this limit is flexible in areas with high property prices and in extra circumstances. The loans want no down payment. At the same time, home buyers can put down any amount which they deem fit. There is a funding fee which is calculated as a division of the loan amount. It is 2.15% for first-time home buyers development no down payment. When a down payment of 10% is made, the division drops to 1.25%.
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