VA Loan – Who’s and Why’s – Do you Qualify?
VA Loans have been around for about 73 years and came to fruition as part of the Serviceman’s Readjustment Act commonly known as the GI Bill of Rights. The VA loan originally was established to assist War World II Veterans in lieu of cash bonuses as they transitioned back into civilian life.
A VA loan is a mortgage guaranteed by the United States Department of Veterans Affairs. The loan may be issued by qualified lenders. The mortgage is a guaranty by Uncle Sam to provide protection for a portion of the loan should the borrower default.
Most members of the military, veterans, reservists, and National Guard members are eligible to apply for a VA loan. Spouses of military members who died while on active duty or as a result of a service-connected disability may also apply. Active duty members generally qualify for a VA loan after only 6-months of service
Over the years the rules surrounding the VA loan continue to change, but the reasons for those who qualify to select a VA loan remain pretty clear:
1) Usually -0- % down payment- Keeps cash in your Pocket
2) Generally lower interest rates – Saves you money every Month
3) No Mortgage Insurance Premiums to Pay – Known as PMI – Keeps Cash in Your Pocket
4) Flexible Payment Options – 10, 15, 20 and 30-year terms are usually available
5) There are limits to the homes purchase price but most areas will support up to a $400K purchase price and in some areas even higher
6) Also, it may interest you to know that there are times when unmarried surviving spouses or spouses of service persons may also qualify for a VA loan.
For more information call 704.907.7613 or email us: LorettaRealty@gmail.com