In 2013, the mortgage schedule of the Us division 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 division in 2013. Find out more about these products and their features, benefits and drawbacks and check either you qualify.
Loan Basics
A Short Guide to the Va Mortgages
The Va mortgages are home loans backed by the division of Veteran Affairs. The division does not issue them. The loans are ready from discrete dissimilar lenders participating in the program. They have similar features compared to their accepted counterparts, but there are some renowned differences as well. These home loans are generally 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 service completed after 1990 and honorable discharge, retired list placement, transfer to the Standby retain or Ready retain after dismissal as honorable or lasting service in the premium Reserve. Surviving spouses of veterans, who died, went missing in activity or were taken as prisoners of war, can also qualify. They have to have remained unmarried or may have remarried, but under unavoidable conditions in order to be eligible for such a home loan.
Since the loans are ready from accepted lenders, applicants have to meet normal affordability criteria. These criteria are based on income, debt-to-income ratio and prestige score.
Loan Features
The Va mortgage loans come with discrete amounts. The maximum loan estimate is 7,000, but this limit is flexible in areas with high property prices and in extra circumstances. The loans need 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 division of the loan amount. It is 2.15% for first-time home buyers manufacture no down payment. When a down cost of 10% is made, the division drops to 1.25%.
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