VA Approved Lenders to Help Veterans become Homeowners

The Veterans Affairs (VA) loan is authorized by the U.S Department of Veterans’ Affairs. This loan program helps veterans who have served/presently serving the U.S. Military. It offers loans to purchase a new home through VA approved lenders. Even some of the surviving spouses of military personnel can qualify for such a loan.

Eligibility criteria for a VA loan

An applicant has to be a veteran who has a home loan entitlement. Conditions require a minimum number of active duty days for military personnel.

1.    Within a certain period of time after loan closure, the property has to be occupied by the owner.

2.     The applicant must have the reasonable credit to qualify for the loan process.

3.    The income of applying veterans and spouses should be adequate to cover all expense obligations.

Thus, the rules to qualify for the government backed loan process are quite straight forward.

A look at the benefits of VA home loans

1.    No down payment associated: Conventional loans usually require a down payment while those backed by the U.S. Department of Veteran Affairs finance up to 100% of the purchase price.

2.  No mortgage insurance: With traditional loans, when borrowers make a down payment of less than 20%, they have to bear the expenses of PMI; there’s no such insurance associated with VA loans.

3.   Guaranteed by the U.S. government: These loans come with a guarantee from the VA that a portion will be repaid to VA approved lenders if the applicants are unable to make monthly payments. This enables lenders to offer attractive terms to borrowers.

4.  Compare and make the best choice: These loans are offered by banks, credit unions, mortgage lenders and other institutions at different rates and fees. So, applicants can actually compare and make the best choice as per their budget.

5.  No prepayment penalty: These loans do not restrict you from selling your home or refinancing an existing loan into another, at any point of time.

6.   Wide variety of options: You can either opt for the loan process to buy a new home or to make repairs/improvements or to refinance an existing mortgage.

7. Easy to qualify: Compared to other loan processes, the ones backed by the Department of Veterans Affairs are more flexible and it is easier for applicants to qualify for the process.

8.  Lower closing costs: These loans limit the amount of closing costs charged by lenders.

9.  Funding fee flexibility: These loans associate a funding fee which is an upfront cost based on the loan amount, service type and other factors. Such fees can be financed with the loan itself, without any dues at the time of closing. These fees are usually not applicable for veterans receiving disability compensation or for eligible unmarried surviving spouses.

10. Assumable financing: These loans can be transferred to a future VA eligible home buyer.

Licensed VA approved lenders help veterans to understand the loan process matched with their requirements to let them avail the maximum benefits. They assist in obtaining a Certificate of Eligibility (COE) for the loan, calculate entitlements, select the right loan, apply for funding fee waivers (if applicable), explain fees and closing costs and other important decision making steps. Nowadays, such lenders are also available online to take care of the entire process. You can even check the present status of your application to stay updated about your VA home loans.