What are VA loans?

Are you an active member of the U.S. military or a veteran that has completed their term of service? If so, you have the potential to qualify for a loan guaranteed by the U.S. Department of Veteran Affairs. While VA loans do come with additional qualification barriers that not every home buyer will meet, these VA loans can be easier to obtain and potentially more flexible than conventional loans for those who do qualify.

Who is eligible?

VA Loans are offered specifically to active members of the military, veterans, members of the National Guard, as well as their spouses or widows that have not remarried. Assuming the borrower meets the qualifications previously specified, there is no minimum credit score required to be eligible for a VA loan from the government, although some lenders may enforce one. The additional flexibility is helpful for military families interested in purchasing a home that benefit from the additional flexibility.

Benefits and tips

VA loans do not require the lender to make a down payment on their new property. It is common for many other loan programs to require homeowners to place a certain percentage of money aside to cover a down payment; however, VA loans do not require a down payment or mortgage insurance. 

Another added benefit of taking out a VA loan is that there is additional assistance offered to qualified borrowers who are  struggling to pay back the mortgage on their home. The VA as an organization will help borrowers in the event that they begin having trouble making loan payments.

It is noteworthy to keep in mind that a VA loan will require a one-time fee that is dependent upon the size of the loan and the type of veteran applying. Although VA loans generally carry less costs than other types of loans, it is still good to keep this one-time fee in mind in order to plan accordingly.

For further queries, please Contact LoanLeader of America today and find out if you qualify for a VA loan for your home!

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