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What Are The Restrictions On A VA Loan?

By Jason Larrsohn


There are a lot of different loan programs out there, but for veterans, current service, Reserve and Guard members and their families, VA home loans are the best option. Whether you're looking for a VA loan or VA refinancing, the many benefits have been set up in order to best fit the needs of current and former service members and their families.

First of all, who can even qualify for a VA loan? That answer isn't hard to find: veterans, active-duty personnel, reservists, members of the National Guard and some surviving spouses are eligible for a VA loan. In contrast, many more people are eligible for FHA loans, as they require a low down payment. VA loans are usually the better option for a lot of military families because they cater specifically to that group; rates are great compared to other loans, because fewer people qualify.

Due to its being funded and insured by the federal government, VA home loans are more easily affordable to the average citizen, among other reasons, because with the backing of the government private lenders can offer the VA home loan with a lower down payment than they cannot offer on traditional home loans.

Traditional home loans require a down payment of twenty percent while a VA home loan can offer much lower down payments of around three percent. This difference in down payment means that a qualified veteran can receive a VA home loan for pennies on the dollar of a regular home loan down payment.

If you're not interested in a VA loan though, one of the best alternatives is a FHA loan. Practically every lender offers some version of FHA loans, whether they are a standard home loan or a FHA streamline loan to help them refinance.

The VA can't be involved in any legal actions regarding the loan. The buyer is responsible for keeping informed about their rights and responsibilities regarding new property purchases. If you're worried about something, it's always best to hire a lawyer or seek out an expert in property evaluation.

Armed with these cautions, you should be able to take care of yourself when looking for a new home and getting a loan. Just remember that it's always best to be very careful and to cover yourself by having as much of the very best advice you can get. A VA home loan can be one of the best decisions you make when purchasing a home. And when you've been in your home for a little while, you can use VA refinancing to get a lower interest rate on your VA loan. When you do that, remember these cautions.

These steps include inspecting the home to receive state inspection certification, appraising the home and property value, requesting the VA home loan from an approved lender, and finally closing on the home. Receiving a VA home loan is a relatively easy process for veterans who qualify under the stated qualifications of the VA home loan program. Once accepted as a qualified applicant, the other steps to receiving and taking advantage of a VA home loan to purchase one's own home can be more easily and readily accomplished.




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