If you are a military veteran and are seeking to buy a home of your own, do not hesitate to apply for a VA Home Loan.
In the year 1944, the VA Loan came to be via the Serviceman’s Readjustment Act, better known as the G.I. Bill, when Franklin D. Roosevelt, the president, signed the bill into law. Part of the law was a provision to veterans that they wouldn’t have to provide a down payment for a centralized guaranteed home. This particular feature was designed so that veterans could be provided with housing, and also provide assistance for their families. Overall, the bill contributed more for the welfare of veterans and their families than any other program, before or since, and it ultimately led to sustained growth of our nation’s economy. Decades later, the VA Loan is still around and is still attractive with lots of advantages, currently providing assistance to around 27 million veterans nationwide. A central component to the VA Home Loan is a guarantee to cover 25 percent (maximum) of any home purchased through the program.
Through the program, a veteran can either borrow what the purchase is, or the actual value of a property, whichever is less. Furthermore, a funding fee can also be borrowed. However, veterans are not automatically eligible for the program, so in order to qualify, they simply need to sign up. That said, because of the funding fee of the VA Home Loan, many veterans do not sign up. They will be exempted from the funding fee on the VA Home Loans, however, in the following cases:
– If a veteran receives disability compensation because of his services related to medical issues
– If a veteran is entitled to a commission for not drawing his or her retirement pay
– To the surviving spouses of veterans who have died in service or from disabilities due to service.
If you are still unsure, you can contact your local VA office who will properly review your service records and can then get determination from the VA.
There are many uses of a VA Loan, for example, you can buy your own home, build your own home or even use it to improve your home. It’s pretty simple too, as overall there is a very little “red tape” in getting a VA Loan. The VA Loans which are guaranteed are only made by private lenders such as mortgage companies, banks, or savings and loans etc. They make veterans eligible to buy a home through the VA Home Loans which is for their personal occupancy. The lender is protected if they cannot repay.
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