In 2013, the mortgage schedule of the Us group of Veteran Affairs (Va) marked its 70th anniversary. It was one of the strongest years for Va loans since their introduction in the market. Some 630,000 new loans were guaranteed by the group in 2013. Find out more about these products and their features, benefits and drawbacks and check either you qualify.
Loan Basics
A Short Guide to the Va Mortgages
The Va mortgages are home loans backed by the group of Veteran Affairs. The group does not issue them. The loans are ready from assorted dissimilar lenders participating in the program. They have similar features compared to their approved counterparts, but there are some noted differences as well. These home loans are generally designed for veterans and active duty personnel, but other home buyers may be able to qualify as well.
Eligibility
Veterans and active duty personnel are automatically eligible for Va mortgage loans. National Guard and reserve members can also qualify if they meet a set of criteria. These are at least 90 days of active service completed after 1990 and honorable discharge, retired list placement, transfer to the Standby reserve or Ready reserve after discharge as honorable or continuing service in the prime Reserve. Surviving spouses of veterans, who died, went missing in performance or were taken as prisoners of war, can also qualify. They have to have remained unmarried or may have remarried, but under inescapable conditions in order to be eligible for such a home loan.
Since the loans are ready from approved lenders, applicants have to meet normal affordability criteria. These criteria are based on income, debt-to-income ratio and prestige score.
Loan Features
The Va mortgage loans come with assorted amounts. The maximum loan amount is 7,000, but this limit is flexible in areas with high asset prices and in special circumstances. The loans wish no down payment. At the same time, home buyers can put down any amount which they deem fit. There is a funding fee which is calculated as a percentage of the loan amount. It is 2.15% for first-time home buyers manufacture no down payment. When a down payment of 10% is made, the percentage drops to 1.25%.
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