Considered Getting a VA Home Loan?

Military personnel who are classified as veterans, inapplication programs being offered by some mortgage
active duty or service, or reservists may be qualifiedlenders. These programs are being offered to
for the VA home loan program under the Departmentencourage veterans and servicemen to avail of the
of Veterans Affairs. The problem is that most of themVA home loan program the cost effective way.
are not aware of the home loan that they fail to availThis program translates to very low interest rates of
of such benefit.only 6.60 percent for a thirty year VA home loan
The VA home loan became possible by virtue of theprogram. The VA home loans offered in California also
Servicemen's Readjustment Act which became a lawvaries as the applicants can finance any type of
during the time of former President Franklin D.residence like single, condominiums or even portable
Roosevelt. The law provided GIs or veterans thehomes or vans.
benefit of applying for home loans without the initialMost loan agencies in California offer as much as a
payment commonly known as down.$521 thousand home loan. If this is not enough, this can
The law received praises not only from those in thebe augmented by availing of a second home loan
service but also from other sectors because it madewhich is also allowed by some lenders. Plus, applicants
the dream of every American, including the militaryof home loans that have been guaranteed by the VA
personnel, to own a home a reality. The law not onlyare no longer required to pay the down payment for
responded to a pressing need among this sector but itthe home loan.
also provided impetus to the construction industry ofVeterans and servicemen who have been honorably
the country.discharged from the service and who want to avail of
Most veterans and personnel are not really capable ofa home loan program in California should choose
building or buying their own homes because of financiallenders that offer low rates and transaction fees. It is
constraints. Aside from the burden of paying a downalso not required that the applicants be residents of
payment for a regular home loan, there is also theCalifornia prior to their VA home loan applications. It
problem of paying the monthly insurance fees.also does not matter where they served in the military.
Under the law, veterans or service personnel whoAny veteran or service man is eligible provided they
have rendered at least 90 days of service duringare willing to buy or build a home in California.
wartime and at least 181 days of continuous serviceThe increase in the guarantee amount for VA home
during peace time are qualified for the home loanloans in California may be due to the fact that
provided they have been honorably discharged fromCalifornia is among the two States in America that
the service.requires more veteran homes. Thanks to the
The 2002 law increasing the guarantee on VA homeenactment of the Veterans Home Bond Act of 2000,
loans to sixty thousand dollars means that those whoadditional funds for the construction of new homes for
are eligible for the home loan can now avail of a higherveterans in the Ventura, Lancaster, Fresno, Redding
loan amount since most lenders allow them to borrowand West Los Angeles areas have been made
an amount that is about 400 percent than theavailable,
guaranteed amount of home loan.The same law specified that new veterans homes be
The increase in the amount of VA home loanconstructed in Ventura and Lancaster
guarantee is favorable to those who are eyeingCalifornia offers a sunny weather not only for those
housing units in the Washington and California areaswho want to have fun but also for veterans who
considering that these areas have higher housingwant to live peacefully and serenely in their own
costs.homes. By availing of the VA home loans, any qualified
Veterans and servicemen in California who want toveteran can now start getting used to the good life in
own a home should avail of the easy VA home loanCalifornia.