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MBA Urges Regulators To Avoid Invoking Suitability Standards
The Mortgage Bankers Association (MBA) recently made a preemptive strike against what it obviously perceives as the next threat against the mortgage industry - "suitability standards." Read more...

 

The Advantages Of VA Home Loans

VA home loans are a unique way of extending support to the United States war veterans, who committed their lives to safeguarding the interests of the country. Therefore, understanding these home loans is beneficial.

VA home loans programs provide financial assistance to veterans so that they can purchase a home at a favorable rate of interest and convenient loan terms.

All the armed personnel who served the country's cause during World War II, the Korean Conflict, the Vietnam War, in the Persian Gulf and the Afghanistan War, are eligible for VA home loans. Also, all personnel who have done peacetime service for 181 continuous days are eligible as well. The spouses of war personnel who lost their lives during wartime and those captured as Prisoners of War, are also eligible for VA home loans.

The foremost step in securing VA home loans is for the veteran to locate a suitable property in a safe locality. Next, the veteran has to go to a lender of his or her choice and apply for a home loan. VA guaranteed home loans are provided by private lenders that include banks, mortgage companies as well as savings and loan associations. While submitting the loan application, the veteran will also need to present papers of discharge from the service as well as a Certificate of Eligibility. The property in question is then appraised and the reasonable value of the property is determined. Depending on this, the loan application is approved and the loan amount is then provided to the veteran.

Home loans provided by the VA are fixed-interest mortgage loans that do not require any down payment. These home loans are to be provided to all eligible veterans, regardless of their age, color, race, sex, religion, familial status, nationality or handicap. Another advantage of VA home loans is the fact that there are no prepayment penalties and long amortization terms. Houses provided under VA home loans programs are duly inspected at the time of construction and require a warranty from the builder.

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