| A VA mortgage has numerous advantages for a | | | | this requirement also leaves homeowners with more |
| borrower purchasing a new home or a homeowner | | | | money in their pockets. |
| who is refinancing his or her current mortgage. This | | | | If interest rates have decreased since the original |
| type of loan is specifically for veterans or service | | | | mortgage was taken out, homeowners can refinance |
| members currently serving in the U.S. military. It is an | | | | their current mortgages in order to receive the new, |
| exclusive benefit available to them in return for their | | | | lower interest rate. The lower rate can lower their |
| service to this country. This type of financing is known | | | | monthly mortgage payments and save them |
| for its great rates, flexible loan requirements and easy | | | | thousands of dollars in interest over the life of the loan. |
| qualification guidelines. | | | | A homeowner may also refinance their current |
| Save Money When Purchasing a Home with this Loan | | | | mortgage to consolidate debt or receive cash back. |
| This type of loan is especially great for veterans and | | | | Requirement of this Loan |
| current military members who are first-time | | | | To qualify for this type of financing, the applicant must |
| homebuyers because of the large amount of money it | | | | be a veteran or current service member and meet |
| saves them. These loans do not require a down | | | | certain service length requirements. If the borrower is a |
| payment on home purchases, unlike most conventional | | | | veteran, he or she must have been discharged from |
| home loans. Borrowers can use the money they save | | | | the military under conditions other than dishonorable. |
| for other home expenses or for their personal use. If | | | | The Department of Veteran Affairs does not have |
| eligible, borrowers can also qualify for the first-time | | | | strict credit or income requirements, but it is required |
| homebuyer's tax credit, which can be up to $8000. | | | | that borrowers have clean credit histories of at least |
| This incentive is ending soon, so new homebuyers | | | | twelve months. Most lenders will require a borrower to |
| should act now. | | | | have a credit score of at least 620 to qualify for a |
| Current Homeowners Save Money with this Loan | | | | loan. There are also a couple of credit/income |
| Because this type of financing is known for having | | | | requirements, including a minimum residual income |
| lower interest rates than most other home loans, | | | | requirement and a maximum debt-to-income ratio. |
| homeowners can save money each month on their | | | | Borrowers are required to escrow their taxes and |
| monthly mortgage payment. This money can be used | | | | insurance to ensure that all payments are kept up to |
| for other bills or for personal expenses. This loan also | | | | date. The fees associated with the loan, such as the |
| does not require any mortgage insurance, which is | | | | funding fee and title insurance, can be financed into the |
| typically required on most home loans. The absence of | | | | loan to lower the borrower's out of pocket costs. |