VA Loans And Their Benefits

fff7Veterans can benefit tremendously from VA loans. Statistics have shown that more and more military service members are now availing VA loans than ever before, especially after the sharp downturn in the recent economy. The Department of Veterans Affairs’s data has also shown a significant increase in the volume of home loan sought by veterans. In fact more than 180,000 home loan guarantees were issued in the year 2008 alone, an increase of more than 31 percent compared to the previous year.

The increase in these numbers can be contributed not only to the attractive interest rate and favorable terms but also to the availability of no-down payment loans to these borrowers. While no-down payment loans are hard to obtain given the strict qualifications such as collateral and high credit score, veteran loans make it possible to obtain these loans without much effort. The VA home loan program is aimed to deliver loans to veterans who are eligible for such type of loans. The eligibility criteria varies depending on the lender like Flagship Financial and other factors, but mostly these loans are given to veterans with qualifying income and credit for purchasing their primary residence. All these without paying any money upfront towards closing costs and other fees wherever necessary.

Most VA loans cover 100% of the value of the home, and there are many types of loans that are offered in today’s world. VA refinance loans, for example, are loan programs that are designed for veterans who are struggling financially and need extra cash for a real need. The need maybe anything from college tuition to repaying credit card bills and mortgage. In all such cases, VA refinance programs offer a great incentive to payoff those bills and can be used as an equity under certain terms and conditions.

Streamline refinance program or IRRRL allows veterans to refinance their mortgage at a lower interest rate than they are currently paying. This program is available to those veteran borrowers who want to refinance or reduce their monthly payment on their original VA home loans. The ability to repay is also an important aspect that the lender will look into while issuing this loan. The amount of money borrowed is based on the big picture; what amount is really needed for a cause and how the borrower will pay on a regular basis. This sort of loan program requires that the lender knows the borrower’s needs, understands the market and recognized whether the program can actually support the idea. In essence, VA loans come is many shapes and forms that are beneficial to veterans for their short-term as well as long-term needs. Which program is fit for you depends on your current situation, future needs and budget.

Speak Your Mind