Please enable JavaScript to access this page. Homes And Families Counselling: Guidelines To Applying For Veteran Home Loans

Guidelines To Applying For Veteran Home Loans

It is nowadays more difficult for people to get mortgages because of the stringent requirements in application. It is therefore not easier for veterans to get loans to fund their needs of owning homes. This is why there was the introduction of veteran home loans to enable such servicemen own homes.

There are various stipulations that one has to meet before being considered eligible for the loan. Those who need it must have served in the army for quite some time e. G. For those who were there during the peacetime period it must be more than 181 days and for the National Guard service men its 6 years. If you served for more than 90 successive days during wartime then you also qualify to apply for the loan. The latter includes wars such as World War 11, Vietnam War, Korean War, the Gulf war and the 24-month rule.

The conditions stated above are the ones used by the government in trying to determine who is eligible and who is not. After this, one is issued with a certificate for eligibility. It does not, however, mean that once you having been issued with this certificate you are guaranteed of the loan. You have to prove that you are able to repay it by presenting your credit card report. This will show whether you have other unpaid debts. It is also required of one to prove that they have sufficient income. It is likely that the loan will not be approved if it is determined that an individual has bad credit.

These loans are more beneficial than normal ones in a number of ways. First of all, before being issued with the loan, one does not have to provide a down payment as is the case with normal loans. In addition, the guarantor against the loan is the federal government.

Once one has received the loan, they are allowed to buy the type of home they want or use the money in their home improvement. This can even be buying manufactured ones or the changing of installations in the current home. You can therefore use the money in renovations.

One has to just identify the home they want to buy together with the best lender in their opinion. A real estate agent will however be needed to sign a purchase agreement which will be presented to the lender. This document together with the purchase agreement means that the loan can now be processed.

With a purchase agreement and certificate of eligibility, all is good to go. Just go to your lender and present the documents together with bank statements. It will be processed and then closed.

Veterans living on a low budget can benefit more from this type of loan because of the policies surrounding it. There is no monthly insurance fee needed and the interest rates are lower than those in the market. One should therefore apply dreaming of a owning a home.

No comments:

Post a Comment