VA Loan Program Guideline basics .
by: AccessNational
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For years, VA loan programs have help veterans get housing financing with little or no money down. While VA loan programs don’t provide the direct funding, they do insure loans for veterans, so they receive loans (even large loans) without down payments. Without the security of these VA loan programs, many veterans would find it hard—if not impossible—buying a home.
Many VA loans, such as those offered by Access National Mortgage, give the security and protection a potential veteran home buyer is looking for.
VA Loan Program Guidelines: What can you get?
VA loan programs allow veterans to obtain properties. The only rule being that the property has to be the primary residence of the veteran borrower as VA loan programs are designed to give veterans the ability for home ownership.
VA loan programs allow veterans to purchase the following types of properties.
• Single family homes
• Townhouses
• Condo units (in approved projects)
• Fixer-upper homes (in which case the financing can be used for the purchase and the home improvements)
• Manufactured homes
VA loan programs are also available for refinancing existing loans and for improving the quality of existing homes, including the costs needed to make homes more energy-efficient.
VA Loan Program Guidelines: The Basics
The basic pillar of the VA loan program guidelines is eligibility in the form of a Certificate of Eligibility, which can be obtained from the VA with the assistance of a VA approved lender. With this certificate, the VA loan programs then moves on to finances. The financial requirements for the veteran borrower are contingent on them having a good credit rating. If they are offered the loan, the following VA loan program guidelines then kick in.
• A Maximum guarantee of 25% of the loan, up to $104,250 (in most states); a maximum VA loan amount is $417,000
•Hawaii and Alaska: a maximum guarantee of 25%, up to $156,375; a loan maximum of $625,500 (to accommodate for higher cost
of living)
• For joint spousal eligibility the maximum loan guarantee of the lesser of 40% of the loan or $36,000. (An alternative figure of $104,250 applies to some loans over 144,000.)
VA Loan Program Guidelines: The Protections
With a VA loan program, buyers get a high level of protection, thanks to the content of the program and its guidelines. These include:
•No PMI (Private Mortgage Insurance) costs, which could lower mortgage payments by hundreds of dollars
• Quality inspections to ensure that property meets the housing standards of HUD
•Protections from predatory lenders and discrimination
• A warranty for new homes
•Caps on lender fees and other charges directed at borrowers
• Compensation for fixing of any structural problems in new construction
In addition to these protections, the VA also encourages lenders to work with buyers who may have a hard time making their payments due to a temporary financial setback. This is an additional layer of protection helps keep veterans home owners from foreclosure and credit problems.
The government has worked to create and improve VA loan programs through the years, since the program’s creation in 1944. These VA Loan programs are both flexible and secure. The VA loan programs have given veterans financial opportunities, which they have earned through their service to the country. Veterans who qualify for these programs should look for a trustworthy VA lender to see how all of these VA loan program guidelines can help them meet their goal of purchasing a home.
About the Author
This article is provided by Access National Mortgage, based in Denver Colorado. Access National Mortgage provides progressive and superior financial solutions like a New Mexico FHA Loan Application, a Wyoming FHA Mortgage Calculator, debt consolidation loans, information about California FHA refinance benefits and whole host of other mortgage products all across the United States.
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