VA Loan – Who Qualifies and How?

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Wondering what is a VA loan? A VA loan is a loan that is being offered through the US Department of Veterans Affairs. The VA is the office that is mandated to set the guidelines of who can avail of a VA loan but VA loans are not being offered by the office at all. VA loans, like most loans, are offered by banks, mortgage companies, and private loan companies as well. How does a VA loan work VA housing loans are being offered not only to individuals who are still serving but also to those who are veterans and living spouses of veterans as well. Lenders may have different underwriting requirements but generally, getting yourself qualified for a VA loan is relatively easier than applying for conventional loans. Buying a house is not the only coverage of a VA loan. Anything that has to do with a home loan is covered in the program be it buying, repairing, building, or retaining a home. Once approved, and if you qualify, a VA loan can even cover 100% of the financing of your home. Compared to other home loans, a VA home loan usually had no down payment required unless the lender you chose asks for one. Another good point about a VA loan is that borrowers can get assistance from the VA in case the borrower is in danger of defaulting. Who qualifies for a VA loan VA loans are not only for a VA home purchase but it can also help veterans borrow against their home equity for home improvements, pay off debt through cash-out refinance loans. Interest rate reduction refinance loans (IRRRLs) can also help the borrower get refinancing to get a lower interest rate. Another VA loan is available for Native American veterans who need assistance in buying, building, or improving their home on federal trust land through the Native American Direct Loan Program. This program comes with a reduced interest rate as well. For veterans who need help in building, or buying, an adapted home because of their disability can apply for a VA home loan as well. VA loans offer outstanding benefits like no mortgage insurance nor prepayment penalties. But as always, choose the best lender that can give you a better offer.