The VA Loan is a very specific form of mortgage loan that is generally issued by pre-approved lending institutionsand are moreover, further guaranteed by the “U.S. Department of Veterans Affairs” or DVA. The core purpose of the program was to provide help and support to all those returning service members who were veterans, coming back from a conflict zone. This program was initially created by the government of the United States of American, way back in 1944 as the Second World War was dying down. The main aim of disbursing such loans was to help these veterans who did not have the financial resources to apply for commercial loans and pay hefty down payments, up front. Furthermore, duly approved VA loans did not require an excellent credit score either.
o No down payments required
And unlike other loans (including even FHA approved financial loans) the requirement for paying ‘lump sum’ down payments does not typically apply to VA loans, because the men and women have essentially proved their worth by fighting for their nation and its values.
As a matter of fact, this is precisely why applicants with a military background can potentially qualify for a house loan program available via the Veterans Administration (VA) can purchase a home without any down paymentat all. This applies not just to U.S. military (or affiliated branches) veterans but also the surviving spouse of a veteran, as well. Apart from that, even personnel, who are serving on active duty currently,in any particular branch of the U.S. military can also potentially qualify for a ‘no down payment up front’ VA loan. This loan can easily apply to just about any ‘owner occupied home’ or for that matter, any apartments, condominiums, and townhouses etc. that are situated in various pre-approved DVA project complexes.
o These loans are available in spite of bankruptcy or even foreclosure
The past history of bankruptcy or even outright foreclosure of a service member is not a factor in the disbursement of such a loan and therefore bankrupt service and ex-service members can also apply for this loan and subsequently secure the same. (Albeit this cravat is subject to certain terms and conditions.)
o There is always a certain amount of mandatory fee involved
While there is no particularmortgage insurance that has been associated with any particular VA loan but there is still the ‘VA Funding Fee’ that needs must be taken into consideration. This mandatory fee is generally around 2 percent or so,of the total amount of the loan that has been disbursed to the applicant and helps finance all of the DVA’s activities which enable this program to be kept in circulation. As a general rule this feeis typically required on both full purchase as well as refinance options.
The VA housing loans program is a really great opportunity for both veterans and even active service members to avail low cost housing opportunities and live in their own homes.
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