About VA Loans

The VA Loan is a loan guaranteed by the U.S.years
Department of Veterans Affairs. In 1944, President6. U.S. citizens who fought on behalf of governments
Franklin D. Roosevelt signed the GI Bill of Rights ofwho were friends of the U.S. govt. in the Second
which the VA Loan was a part. The Bill is also knownWorld War
as the Servicemen's Readjustment Act.7. A couple of years after being discharged of
Lending Limitsbankruptcy filed under Chapter 7 and instantly after
In 2009, if you are a veteran in the U.S. and meet thefiling under Chapter 13 given that your payments are
eligibility criteria, you can apply for a normal VA Loanon time and have been verified for a year.
with $0 down payment up to the VA Loan Maximum8. Foreclosure, if any, more than 2 years back.
in qualified counties like New York, Alabama, Utah,9. Officers of National Oceanic and Atmospheric
Virginia and many more.Administration, member of Public Health Service
Who offers VA Loans?officers, cadets at service academies etc.
These loans are offered by:Other criteria include great credit report, timely
payments against credit for at least a year, less debts,
1. Organizations providing loansliquid assets, military benefits, stable employment
2. Bankshistory, proper payments/clearance of federal debts
3. Private lendersand so on.
4. Other financial institutionsPre-qualifying for a VA loan always helps, by giving
Featuresyou the required confidence.
VA Loans have certain specific features. If you wantWhat documents are needed to get this loan?
to take such a loan you need to be aware of them.Following is a list of documents needed from those
Here is a look at specific VA Loan Features:wanting to get a VA Loan:
1. Veterans can take buy a house on VA Loan for1. VA Form 26-1880 is a Request for a Certificate of
living there, not for renting out. The lender is protectedEligibility.
against financial loss if you are unable to pay the loan2. DD-214 means 'discharge papers'. If you don't have
in the futureit, you can send a 'Request Pertaining to Military
2. You need to be an eligible veteran to get the loan3. Records' by filing the SF-180 form.
3. A unit in a cooperative, a town-house in a project4. Social Security numbers
that has VA approval or a home can be bought5. Bank details
4. The lender charges 1% and reasonable discount6. Other loan information
points7. Asset Details
Types8. Monthly Income etc.
VA Loans can be of many types. Here is a look at9. Residence address for the last 2 years and so on.
what they are, so that you can select one that is aptWhat is the assured amount in VA Loans?
for your requirements:Those availing a VA Loan will get the following
assured amount:
1. VA home loan - for buying a new home
2. VA loan for refinance - for payment of real estate1. 25% of the home loan is guaranteed under VA loans
debtswhen the latter is within $104,250.
3. VA construction loans - for new constructions2. The funding charges and the lesser of the two - the
4. VA streamline refinance - for lowering interest ratespurchase price and the money the property is worth -
5. VA adjustable rate - for buying homes with lowerare lent under this loan scheme.
monthly loan payments. It has a fixed interest rate forCosts incurred in getting a VA Loan
the first few years which then involve yearlyThe veteran needs to bear the following expenses
adjustmentsrelated to a VA Loan himself. Here is a look at what
Advantageskind of costs are involved in getting a VA Loan:
Taking a VA Loan gives certain benefits:
1. VA Funding fee
1. Many uses, including refinancing2. First-time inspection money
2. Loan is federally guaranteed with no down payment3. Payment for your credit report that the lender
3. No private loan monthly insurance neededreceives
Eligibility4. Fees and taxes related to the recording process
If you wish to avail a such a loan, you need to satisfy5. Some percentage of taxes, assessment fees; initial
certain criteria. Here is a look at what they are:deposit for insurance including title insurance and tax.
6. Money towards insurance for unforeseen natural
1. Veterans who were on active duty in the Navy,disasters and title examination
Army, Marine Corps, Air Force, or Coast Guard and7. Certain charges if refinancing loans is there
were discharged with honourDisadvantages
2. Were present for at least 90 days during wars andThose thinking of getting a VA Loan should also be
181 non-stop days during peaceaware of it's drawbacks like:
3. For a National guard, the time period is six years
4. An officer who started serving after October 16,1. Closing costs are not generally covered. You have
1981 or after September 7, 1987, the time requirementto make special arrangements if you want the same.
is a 2 years.2. No assurance that your home is the best you can
5. Member of the Selected Reserve for more than 6get!