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Wartime And Peacetime Eligibility Differences For VA Loans
Posted on June 23, 2010
Filed Under VA Mortgages | Comments Off
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What are some more exact requirements for eligibility for those veterans who are interested in obtaining home financing assistance from the Veterans Administration? Briefly, a veteran is eligible for VA home loan benefits if he or she served on active duty in any of the following branches of the armed forces: Army, Navy, Air Force, Marine Corps, or Coast Guard. Furthermore, you must also have been discharged under any conditions other than dishonorable after a certain time period.
These time periods are based upon whether you served during wartime or peacetime. For those veterans who served during wartime, the timeframe for eligibility is 90 days or more. If the veteran served during peacetime, the amount of days for eligibility is 181 continuous days or more.
Specific periods of wartime and peacetime that are covered under the provision of the VA’s General Rule for Eligibility, include the following periods of time:
Wartime - World War II: 9/16/40-7/25/47; Korean conflict: 6/27/50-1/31/55; Vietnam era: 8/5/64-5/7/75; Persian Gulf War: 8/2/90 – undetermined
Peacetime - Post-World War II period: 7/26/47-6/26/50; Post-Korean period
2/1/55-8/4/64; Post-Vietnam period: 5/8/75-8/1/90
Four Steps To Achieving A VA-Guaranteed Loan
Posted on June 9, 2010
Filed Under VA Mortgages | Comments Off
When you are looking at the prospect of securing a VA-guaranteed loan, it may be helpful for you to break down this process into four distinct steps. Each one represents a different point in your progress along with necessary elements that carry you forward to the next step.
First, you need a contract to purchase. At this point, the veteran should find a home and discuss the purchase of the property with the seller or associated agent. Then he will sign the purchase contract once a VA loan has been approved.
Second, you should fill out a loan application. The borrower must choose a lender, present a Certificate of Eligibility, and fill out a loan application. Then the lender will process the credit information and contact the VA about assigning an appraiser to find out the reasonable value of the home.
Third, a decision must be made about the loan. Once a value has been accepted by everyone involved, the lender qualifies the borrower and the loan can be approved. It is the lender’s responsibility to make this decision.
Fourth, the loan is closed. Now, the veteran can deal with the closing of the loan. At this point, the mortgage and not should be signed, as well as any other finalizing paperwork. All of the terms and conditions of the loan including payment schedule will be outlined by the lender or closing attorney.
Choosing The Right Type Of VA Mortgage
Posted on May 26, 2010
Filed Under VA Mortgages | Comments Off
Do you want to choose the right type of VA mortgage? Well, the best way to do this is to look at your own lifestyle and personal situation. These factors may be helpful in determining the right sort of VA loan for you.
Take a look at three types of VA mortgage loans and decide which one meshes with your circumstances the best.
A fixed rate loan. Of course, these are the kind of loans that have stable interest rates that will not change over time. They are the best choice for people who are intending to remain in their residence for a extended period. They may also prefer a set payment since it will better suit their budgetary and monetary constraints.
An adjustable rate loan. With these loans, the interest rate starts out at a fixed number for certain period. Afterwards, when the period expires, the rate amount will fluctuate with the changes in the market. This is the preferred option for those who don’t plan to stay in their home for much longer than the fixed period. The reason for this is that adjustable rates will start out at lower levels than fixed rate loans, which saves the borrower money.
Interest only loans. You can get lower payments at the start of your loan term while paying larger ones later in the term. This is used by people who believe they will have sufficient future income to pay the higher rates.
A Few Hindrances To Obtaining A VA Home Loan
Posted on May 12, 2010
Filed Under VA Mortgages | Comments Off
Even though VA home loans have many advantages over standard mortgage loans, such as no requirements regarding down payments, no PMI premiums to pay, savings on interest and not paying closing, there are some disadvantages. Generally, with VA home loans, you will encounter many of the same negative aspects that you would with a traditional loan.
One point made by many is that VA mortgages can take a protracted period to process. A serious hindrance for most vets is simply trying to find a seller that will deal with VA mortgage terms due to this idea of long waits on loan processing. In other words, it may be difficult to find a house.
A further disadvantage of VA loans has to do with benefits mentioned earlier. Since you are not allowed to pay the closing costs, the seller must assume responsibility. This could mean that the veteran will have to take a non-negotiable asking price for the house.
VA Loan Purchasing: What About Restoration Of Entitlement
Posted on April 28, 2010
Filed Under Loans, VA Mortgages | Comments Off
There are certain conditions in which a veteran who has previously purchased a home using a VA home loan, can take their previously used entitlement and actually have it restored to its original amount. This is what restoration of entitlement is all about. It allows veterans to purchase another home.
Of course, to reap the benefits of this provision, one or the other of the following required conditions must be met. First, the property that was bought with the previous VA loan must already be sold and the loan should be paid in full. Second, the buyer (also called a qualified veteran-transferee) agrees to assume the remaining balance on the previous VA loan. This buyer will then substitute his or her entitlement for the same amount of entitlement that was used by the seller.
Restoration of entitlement can be granted only once. The veteran must have already paid the loan in full.
Use Your Remaining Entitlement To Get A Second VA Loan
Posted on April 14, 2010
Filed Under Lenders, Loans, Second Mortgage, VA Mortgages | Comments Off
If you have had a VA loan in the past, you might have some “remaining entitlement” which can be used to obtain another VA loan. At the present time, eligible veterans have an amount of entitlement equal to $36,000. This amount has increase gradually over time. Veterans who purchased a home when the entitlement amount was less can use what was left of their entitlement then and add it to the difference based upon the current level. This would allow you to have a adequate entitlement to get VA loan financing. Also, bear in mind that if you want to obtain a loan of $144,000 or more, you can access a maximum amount of entitlement equal to $50,750.
In addition, most lenders will require that a combination of the guaranty entitlement and any cash down payment must equal 25% of the reasonable value or the sales price of the property, whichever may be less.
The Historical Backdrop To VA Fixed-Rate Loans
Posted on March 31, 2010
Filed Under Lenders, Loans, VA Mortgages | Comments Off
It was in 1944, that then President Franklin D. Roosevelt established what would later be called the GI Bill. The bill that was signed into office was called the Servicemen’s Readjustment Act. The point of the new law was to provide military veterans with the ability to purchase homes without paying the standard required down payment associated with most standard loans.
This was the beginning of the VA loan. At this point, the loan was a fixed-rate loan that gave borrowers the ability to finance their mortgages for various term lengths ranging from 15 through 30 years. These loans had a static rate throughout the course of the loan term, which meant that it never changed.
Today’s VA loans are further guaranteed by the Department of Veterans Affairs. These modern loans enable veterans to buy single-family homes, build houses, buy homes for the purposes of improvement, as well as buy townhouses or condominiums in a VA approved projects.
VA Loan Basics: Using A Real Estate Agent To Your Advantage
Posted on March 17, 2010
Filed Under Loans, VA Mortgages | Comments Off
There is a whole process involved with purchasing a home using financing. If you are a veteran and you have decided to use a VA loan the same rules apply when it come to viewing and inspecting a potential home. You will want to adhere to a few non-nonsense guidelines when you start looking for a new house.
Since having a professional eye can be a great benefit, it is better that homebuyers retain the services of state-licensed real estate agents to help them in house search process. These agents will be able to help you find affordable price ranges, make suggestions about particular features of a home that may be preferable to their clients, schedule tours of candidate homes, and deal with the sales contracts and other paperwork attached to home buying.
These state-licensed real estate agents will be able to clarify the legal requirements for buyers and sellers as well as offer advice on what lender and certified home inspectors to choose.
VA Loan Guideline Restrictions
Posted on March 3, 2010
Filed Under Lenders, Loans, VA Mortgages | Comments Off
Having an idea about what the restrictions are under the official VA loan guidelines can help you in making a decision about financing. Basically, VA Loans can be used to buy or build a primary residence, refinance a current VA Loan, as well as provide a refinancing option for standard loans or other forms of debt obtained by record of lien. These loans can also be used to make home improvements or renovations for the purposes of increasing energy efficiency.
According to these same guidelines, you cannot use a VA loan to purchase l and, investment properties, or non-residential items like RVs or houseboats. Furthermore, a VA loan cannot be used to buy multiple units in a housing complex unless the applying veteran plans to use these units as part of his or her main place of residence.
There are a number of reasons to consider VA loans but it is important to keep the restrictions in mind so you can make the right decisions about what course to take as far as what type of home financing you plan to use.
Why Do VA Loans Exist?
Posted on February 17, 2010
Filed Under Loans, VA Mortgages | Comments Off
What is the fundamental reason that VA loans exist? This is a serious question with an equally serious answer. As you may know, the Veterans Administration or the Department of Veterans Affairs is dedicated to providing military veterans with assistance in a number of areas including financial, educational, and medical.
The real heart of this question can be exemplified by the brave men and women who have chosen to serve their country by enlisting in one of the branches of the armed forces. This is a major sacrifice for a number of reasons. These men and women have given up time that could have been spent developing careers or establishing business ventures, as well as other forms of gainful employment. This can create some disadvantages when it comes time to take off the uniform and become a civilian once again.
This is why the VA Loan Program exists. It is there to give veterans back an edge or advantage and reward them for their service. At no point is this more appreciated than when it comes to buying a new home. The VA’s low interest and no down payment loans have given millions of veterans the opportunity they would not have had otherwise.
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