Saturday, May 3, 2014

Guidelines To Applying For Veteran Home Loans

By Agnes Dickson


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 some conditions which have been put in place for those who would like to apply for the loan. For example, it is a requirement that one must have served in the army for a given period in historic wars. Such wars include; the Vietnam war, World War 11, Gulf war, Korean War and the 24-month war. In these wars, the individual must have been there for a minimum of 90 successive days. If one was in the National Guard, then they must have served for 181 days or more.

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.

A veteran home loan is one of the best types of loans out there in the market. This is because there are no strict rules behind it. For example, you are not needed to deposit a down payment before being issued with the loan. Also, in case of default, then it is the government that is held responsible for repayment because they are the guarantors in this case.

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.

The application process is smoother as compared to that of normal mortgages. All you need to do is to identify the home you want then get an approved lender. After signing a purchase agreement with a qualified agent in real estate, all that remains is the certificate of eligibility.

The lender therefore needs two very important documents. These are the certificates of eligibility and a purchase agreement. It is becomes an easier process once these are presented. They will then close the process on determining that you are qualified.

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.




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