Potential borrowers who have actively served in the US Armed
Forces may be eligible for the VA home loan.
The VA loan is a special type of loan where the Veterans
Administration guarantees that a certain portion of the mortgage
loan will be repaid in full.
This guarantee can allow eligible borrowers to purchase a home with
no down payment, no private mortgage insurance (PMI), at
competitive interest rates, and minimal or no closing costs.
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If you are an active member of the US Armed Forces, have actively
served in during wartime, or have actively served for at least 181
days without a dishonorable discharge you may be eligible for
the VA home loan.
Reservist and National Guard service personnel may also be
eligible.
For a complete list of eligibility rules, check out the department of
veterans affairs website.
Talk to your lender about qualifying for the VA home loan.
There is maximum loan amount for the VA home loan, however, there
is a maximum on the amount guaranteed by the Veterans
Administration.
For homes up to $144,000, the maximum guaranteed amount, or
entitlement is $36,000. For homes priced greater than $144,000, the
maximum entitlement is $60,000.
Qualifying for a VA home loan may be easier than qualifying for
other types of loans because of the entitlement.
However, certain lenders may place a cap on the total loan amount to
protect themselves against default.
Additionally, VA home loans may not be available for certain
properties.
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Some sellers may be reluctant to sell under a VA home loan because
of the perception that they create delays in the selling process and
that they may have to pay closing costs.
Although this is historically true, the VA home loan process has
become much more efficient.
It is best to talk with your realtor if you are interested in
the VA home loan and they can work with you to find eligible homes.
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Thank you,
Max Taylor
http://taylor-marketing.blogspot.com
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