The Veteran Loans, or VA loans, lending program is an incredibly useful tool if you have a military background or are the spouse of someone who has been in service. Tens of millions of service members have been able to become homeowners since the introduction of VA loans in 1944, and there are some incredible benefits that go along with them. In this guide, we’re going to go through some of the things you need to know about VA loans, and how, if you are a service member, you can use them with an A and N Mortgage. Let’s take a closer look.
How do VA loans work?
The Veterans Administration offers guarantees to private lenders such as mortgage companies, banks, and other private lenders, on behalf of eligible veterans – or eligible spouses – who want to buy, build, retain or repair a home for personal occupancy. Service members can qualify for up to 100% financing on the value of the home.
Why VA home loans?
In simple terms, VA loans are an understanding that the nation is grateful to the service of military veterans. It gives service members peace of mind, too, as home inspections will ensure that the house in question is built to meet specific government structural standards.
What are the requirements of VA loans?
To be eligible for a VA loan, you must meet necessary service requirements as a veteran, active duty service member, member of National Guard or reservist. You can also qualify as a spouse of a service member who has died in active service or been disabled as a direct result of their service role. Each VA loan is awarded on its own merits, but there are some basic guidelines that should show you if you are eligible or not.
Any veteran that has served on active wartime duty for more than 90 days and has been discharged (but not dishonorably). You can also qualify if you have served a minimum of 181 consecutive days during peacetime if you started your service before September 1980, or served as an officer before October 1981.
If you commenced your service after these dates, the service requirement rises to two years, and if you are a member of the National Guard or are a reservist that meets specific criteria, you will need to have six years of service. There are also various rules that govern the eligibility criteria of surviving spouses.
What are the advantages of VA loans?
Military and veteran home buyers will find VA Loans have many advantages over traditional mortgages. Let’s take a look at them now:
A traditional mortgage will usually require a 20% deposit, which can be a large amount of money. Military veterans and service members benefit by not having to put any money down in this case. If you manage to qualify for a VA Loan, you will be amongst the only people able to get a 0% down payment loan for a new home.
With the backing of the US government, those qualifying for a VA Loan are deemed a safe borrower by banks and credit agencies. This means that you will usually be granted a far more competitive rate on your mortgage. The government backing can also help you if you have a poorer than average credit score, feel free to call us to discuss your options.
Faster Mortgage Acceptance
Normal homebuyers have to go through a standard process of checks before they qualify for a mortgage. Those with VA Loans have less risk attached to them, so it’s an easier and quicker process.
No Private Mortgage Insurance
Private Mortgage Insurance (PMI) has to be paid by anybody who has borrowed more than 80% of the value of their home. As VA Loans are guaranteed by the federal government, you will get to save on your monthly outgoings.
If you are a service member who has met all the eligibility requirements, why not take advantage of VA loans? Not only can you get help with 100% of the mortgage value with no down payment required, but you could also enjoy competitive interest rates.
You can apply for a home loan with us here at A and N Mortgage, as we are one of the top VA-approved mortgage brokers Chicago has to offer. Please don’t hesitate to get in touch with us today to find out more or apply for a mortgage – our friendly, skilled team are waiting right here for you and will help you get the information you need.