Before searching for VA homes, you should first determine if you are eligible to avail of the Veterans Affairs home loan guarantee.
To avail of the loan, a borrower must be able to present a Certificate of Eligibility or proof that they are a veteran of the US military.
VA home loans are offered to both retired and active duty military personnel for their purchase of a home.
The VA does not provide the loan, but guarantees it 100 percent at competitive interest rates.
VA will not require borrowers to pay mortgage insurance and the agency works hard at limiting the fees charged to protect borrowers from predatory lending practices.
How to Avail of the Home Loan VA homes can be purchased through financing provided by a mortgage lender.
The lender has a set of requirements before approving a loan application.
At the minimum, they would require the submission of documents that signify the borrower's ability to service the loan.
These would include, but is not limited to, income statements, social security number, personal savings and others.
The VA also has an inventory of foreclosed properties that they offer to the market at a much lower price.
Buyers need to know though, that VA foreclosures and homes purchased with a VA guaranteed loan must become the borrower's primary place of residence.
This is one of the main requirements for VA housing.
A VA loan would be enough to cover your entire purchase, and qualified borrowers can avail up to $400,000 plus.
The maximum loan amount goes higher in Alaska and Hawaii.
You can also take out a loan to refinance your existing mortgage for up to 90 percent of the value of your property.
The only qualified borrowers of VA loans are the servicemen themselves under certain conditions and the surviving spouse of servicemen who died in active duty.
Loan approval or denial is not up to the Department of Veterans Affairs though, because, ultimately, it is the mortgage lender who will provide the financing.
While buyers of VA homes would need to meet the eligibility requirements, the lender will have their own set of requirements that need to be met as well.