When someone reaches a point in their life where they are ready to purchase a home, it’s time to prepare. While Veterans Community Home Loans are sometimes easier to acquire than more traditional loans, there are still important things to consider.
If someone is a veteran and is ready to purchase a home, they may wonder what options they have available. One mortgage option that seems to stand out from the others for veterans: the VA loan. Please keep reading to learn more about the VA loan and how to acquire it.
The VA Loan Explained
VA loans are mortgage loans issued by a private lender. One of the main factors that set these loans apart from traditional loans is that the U.S. Department of Veterans Affairs backs them. The program’s entire goal is to help active-duty service members, widowed military spouses, and U.S. veterans purchase a home.
The VA loan was originally introduced in 1944 as part of the GI Bill. Today, they have become even more popular. The loan is popular because it is easy to qualify for and does not require the person receiving it to make a down payment.
Understanding VA Loans
A VA home loan is one of the two nonconventional or government loan options currently available. These do not work the same way as a regular mortgage provided by a bank or credit union because the government guarantees a VA loan.
This means the government will repay a part of the loan to the bank if someone does not make the payments or if they face losing their home. Because the banks are assuming less risk compared to more conventional loans, a VA loan is easy to get.
VA Loan Requirements
To get a VA loan, military personnel must meet the specific requirements set by the VA. Several factors determine eligibility, which can be found below.
Active-duty service members or any honourably discharged veterans who have served 90 consecutive days during wartime or 181 days of active service during times of peace are considered eligible. Another eligibility standard is someone who has served over six years in the Selected Reserve or National Guard. Any spouse of a service member who died while on duty will also be eligible to apply for this loan.
If someone was planning to go through the application process, they must acquire a COE or Certificate of Eligibility to show mortgage lenders they are qualified for a VA loan. It is possible to get the COE through the VA website, through the lender, or by mail.
Getting a VA Loan
If someone wants to be considered for a VA loan, they should consider the information here. It will help them get the right loan and get the right loan terms. In the long run, taking the right steps will pay off, so be sure to keep this in mind. Being informed is the best way to ensure a home buyer gets the loan they need to purchase the home they want.