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Saturday, March 6, 2010

Veteran Loan

The federal government of United States offers many benefits for men and women who serve their country. One benefit is the VA Mortgage home loan program. VA mortgage home loans can be used to purchase a new home. VA Loan Refinance will manage and finance an existing and available to all honorable discharged veterans and active duty military. The Department of Veterans Affairs (VA) is not actually lend money but they guarantee or ensure that the funds loaned to you by a financial institution approved by VA. You can go to any bank or mortgage company that participates in the VA loan program regulations.

VA mortgage home loans offer several advantages compared with conventional home loans. One of the most important benefits is that VA Loans do not require the payment. As of January 1, 2006 you can buy a home for up to $ 417,000 without being paid. Although there are several conventional no-down payment home loan programs in the market, you will have to pay higher interest for the privilege. Not so with VA loans. You pay the same market price, whether you make 10% down-payment or $ 0 down-payment. In addition, you will find that in most cases, VA interest rate comparable to or even lower than conventional loan rates.

Another major advantage of VA mortgage home loan programs is involving the loan closing costs. While the VA does not require veterans to make down payments, there is still a loan with closing costs home loan borrower incurs program. Closing costs usually average 3-5% of the loan amount. VA, but allows the seller to pay all your loan closing costs up to 6% of the loan amount. Compare this to the maximum 3% seller contribution for most conventional loans. So the VA mortgage home loan is possible for veterans to buy homes up to $ 417,000 without in-payment and without having to pay the closing costs. Talk about the use of force other people's money to increase your net worth!

VA mortgage home loan participants also enjoy the luxury of not have to pay for credit insurance. Conversely, with a standard conventional loan you will have to pay for credit insurance if you put less than 20% as a down-payment. Mortgage insurance can add a significant amount for monthly payments so you do not have to pay is really a plus to borrowers who use the VA loan benefits.

The Department of Veterans Affairs does not charge "VA funding fee" for all non-exempt users VA mortgage home loan program. VA funding fee currently 2.15% of the loan amount for VA loans first time users and 3.3% for the next user who does not make down payments. This fee will be added to the loan amount so that borrowers do not have to pay for veterans from the pocket in the lid. If you are a veteran with a VA scores of disability and receive monthly benefits and, in many cases, you will be exempted from having to pay a VA funding fee.

If you are eligible for VA loans and is in the market for new homes in the VA loan limit VA loans have become the 1st choice when considering financing options you. Offers tremendous advantages over conventional loans and can make you a homeowner with zero or a little spending cash.


Anonymous said...

Ah! This is great! Thank you for countering many
misconceptions I have seen about this lately.