There are currently over 1.5 million veterans just in the state of Texas. A United States veteran is someone who has served for the US military previously. It is our duty, as a country, to provide these individuals with advantages that make their civilian life easier. One of these programs is the VA home loan program. The VA loan program is an easier method to home ownership for veterans and their families. The program, since established, has helped to home a large number of US veterans.
The impact of the program
The VA home loan has helped more than 22 million veterans achieve homeownership. These are people who might not have otherwise qualified or had the necessary funding available to purchase a home. The VA home loan program has had such an impact on not only helping veterans further their lives, but also in improving the US economy. We are coming out of a terrible housing crisis, where many people lost their homes. In return, people were left with damaged credit and the inability to own again. It also left many houses in poor condition, unable to be sold. This brought down housing markets and overall, the US economy. Helping veterans get into homes improves the housing market and the economy for all.
The benefits of the program
What is different about the VA home loan program that makes it easier to get a mortgage? There are actually a couple of benefits in comparison to the FHA or traditional home loan programs. Veterans are not required to meet many of the conventional loan requirements. They are not required to have specific employment requirements. They often do not have to provide a down payment on the loan. They also are not charged high mortgage points. Finally and perhaps the most beneficial, veterans are not required to pay a mortgage insurance.
Mortgage insurances became very popular following the housing crisis. It is essentially an insurance payment against the loss of the house. A significant portion of the monthly mortgage payment is for this insurance. This means that you are not only paying monthly to mortgage interest charges, but you are also contributing to the insurance fund. This results in a very minimal amount actually going towards the mortgage debt. Veterans, however, can entirely avoid this mortgage insurance payment, allowing them to pay down their loan much quicker.
Who is qualified?
Who is qualified for VA home loan rates? With so many benefits, you want to ensure that you are qualified, before beginning the house shopping process. Generally speaking, to qualify for a VA loan, one must have served 181 days during peacetime, 90 days during war time, or six years in the Reserves or National Guard. The spouse of a service member who was killed in the line of duty may also qualify. To obtain additional information about the possibility of a VA loan, you will want to consult with your VA loan lenders. They can start the application process and offer a pre approval, if you qualify.
Important VA loan steps
Obtaining a pre approval for the VA loan is not the end of the process. You will have to find you?re your house to purchase. This often means working with both a real estate professional and loan advisor who is familiar with the VA home loan program. Once you have a house in mind, you will have to officially apply for the VA loan. You will have to submit numerous documents and sign a variety of papers to officially close on the house.
The VA home loan program was developed to assist veterans in achieving home ownership. Not only has the program been significantly successful in increasing veteran homeownership rates, but it has also helped the US economy recover from the recent housing recession. If you are a veteran of the United States military, you can benefit from this program in many different ways.