In 2013, the mortgage program of the Us agency of Veteran Affairs (Va) marked its 70th anniversary. It was one of the strongest years for Va loans since their introduction in the market. Some 630,000 new loans were guaranteed by the agency in 2013. Find out more about these products and their features, benefits and drawbacks and check either you qualify.
Loan Basics
A Short Guide to the Va Mortgages
The Va mortgages are home loans backed by the agency of Veteran Affairs. The agency does not issue them. The loans are available from various separate lenders participating in the program. They have similar features compared to their conventional counterparts, but there are some noted differences as well. These home loans are commonly designed for veterans and active duty personnel, but other home buyers may be able to qualify as well.
Eligibility
Veterans and active duty personnel are automatically eligible for Va mortgage loans. National Guard and sustain members can also qualify if they meet a set of criteria. These are at least 90 days of active assistance completed after 1990 and honorable discharge, retired list placement, replacement to the Standby sustain or Ready sustain after extraction as honorable or chronic assistance in the premium Reserve. Surviving spouses of veterans, who died, went missing in performance or were taken as prisoners of war, can also qualify. They have to have remained unmarried or may have remarried, but under definite conditions in order to be eligible for such a home loan.
Since the loans are available from conventional lenders, applicants have to meet normal affordability criteria. These criteria are based on income, debt-to-income ratio and credit score.
Loan Features
The Va mortgage loans come with various amounts. The maximum loan number is 7,000, but this limit is flexible in areas with high asset prices and in special circumstances. The loans want no down payment. At the same time, home buyers can put down any number which they deem fit. There is a funding fee which is calculated as a ration of the loan amount. It is 2.15% for first-time home buyers development no down payment. When a down payment of 10% is made, the ration drops to 1.25%.
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