Veteran home loans come with distinct advantages for men and women who serve, or have served, in the military. These loans are also available for reservists, active duty service members, and National Guard members. Veteran home loans are guaranteed by the Department of Veteran Affairs (VA), which makes it easy to get a home mortgage from traditional mortgage lenders.
Veteran home loans were developed over seven decades ago. Their purpose was to ensure that service members and veterans had access to funding for homes for themselves and their families.
This article will cover the following subjects about veteran home loans:
The VA has set certain qualifications which must be met to apply for a home loan through their program. Although each approval is determined on a case by case basis, military men and women can apply for a home loan if they meet one or more of these conditions:
The first step is to complete a VA Certificate of Eligibility (COE). With this form, the VA is able to calculate how much the applicant is entitled to borrow, based upon the location of the home and other factors. The form is available on the Department of Veteran Affairs website, and can be downloaded and filled out to mail directly to the VA. Other requirements include that the applicant:
Once the applicant has been determined eligible, the veteran home loan process can begin. Documentation needed will include personal information, income, debt and other information which is submitted for a traditional home mortgage loan. There are, however, other steps to this loan process which differ from non-veteran home loans.
Although veteran home loans have some similarities with other mortgage loans, there are specific steps that a service member or veteran must complete in the application process. They are:
The assurance that the VA will guarantee their home loan is a great benefit for military personnel and their families. Lenders are much more likely to approve mortgages when the Veterans Administration assures protection against loss. Along with this assurance are some other unique advantages of veteran home loans:
Because of these and other advantages, veterans or active service members are more likely to own homes than rent.
The veteran home loan program has put millions of military men and women into homes. In addition to funding purchases of pre-existing homes, these loans can be used to:
Veteran home loans can be used to refinance mortgage loans at a lower rate. They can also be used to switch the type of existing loan rate, such as changing from an adjustable rate to a fixed rate mortgage. The equity in a home of a veteran can be used to tap into money for any use like bill consolidation, education, and vacations.
Adaptation of homes for disabled veterans.
The VA offers grants for veterans that have certain disabilities connected with service. The money can be used to install ramps, widen doors, or any modification to make the dwelling accessible to the disabled veteran.
Homeless veteran assistance.
These programs are specifically designed to help veterans without a place to live, as well as those who are in danger of becoming homeless. Veterans are offered housing, food, and health care, as well as access to employment services in the community.
Assistance with delinquent mortgage loans.
The VA will work with borrowers with veteran home loans to avoid foreclosure on their residence. These services include negotiating with the lender on behalf of the borrower and connecting the veteran with debt counseling.
Veteran home loans are offered as a benefit to service members and veterans who might struggle with getting traditional home mortgages. But even for those who are able to obtain a traditional mortgage, the flexibility of veteran home loans make them the more favorable choice to get financing for home ownership.