Find out if you qualify for a VA loan because it’s among the best home loans available. VA loans are desired greatly because of the following:
- Zero down payment
- Loan amount can be up to 100 percent of the home appraisal.
- Mortgage insurance is not required.
- The VA mortgage can be assigned or transferred to any other qualified VA borrower.
- Your closing costs are lower compared to conventional loans because the seller can pay all or a big portion of your closing costs.
- You can prepay the loan without penalty.
- You have a choice of at least five repayment plans to pay off your loan.
- Can be taken even with a previous bankruptcy record
Because the VA gives a guaranteed entitlement of at least $36,000 to each military member, most down payments required by lenders are covered.
However, the amount is limited up to $417,000 in most counties for the year 2010. The amount is adjusted every year. In higher-cost counties, the limits are higher. In many Alaska counties, the limit is $625,500 and the limit in many New Jersey counties is $681,250. In Nantucket, the limit is $1,094,625, the highest for this year. VA will release another set of limits for 2011.
Your bankruptcy must have been discharged for more than two years, or if less, you must show you have restored your credit to a satisfactory level and that your bankruptcy was caused by reasons beyond your control, such as costly hospitalization.
You qualify for a VA loan if you are a:
- Military member on active duty
- Veteran
- Reservist who either has served or never served on active duty
- National Guard member who either has served or never served on active duty
- Unmarried surviving spouse of a veteran who died in service or as a result of service
You can use a VA loan to buy a single-family home, a condo unit in a qualified project, a unit in a co-op, a manufactured home, or a combined manufactured home and lot. You can also use a VA loan to build your home, to buy a home and improve it at the same time, to refinance an existing home loan or to make your home energy-efficient.
As you’re looking for the home you want with the help of your realtor, you can already request for a Certificate of Eligibility at vip.vba.va.gov. Your lender, however, can get a certificate online for you in minutes.
Although the VA doesn’t require a down payment, you will have to pay a funding fee to the VA, which can range from 0.5 percent to 3.3 percent. But this cost can be included in your home loan. Since 1944, the VA has helped over 18 million military personnel to buy their own homes. Call your realtor now, and the VA will also help your family have a home.
Check out: Tampa Mortgage and Investing in Tampa