Mortgage Tips VA Loan Guaranty Program
For those consumers that qualify for a Veterans Administration (VA) loan, there are a number of benefits. The VA itself does not provide the loans, but instead promises to repay approximately 25% of each loan it guarantees – in case of default by the borrower.
Benefits of a VA loan include:
• Interest rates are frequently lower than conventional rates
• There are no penalties for prepayment of the loan
• Home sellers are able to pay up to 6% of closing costs
• Ratio of consumer debt to income can be higher than for other loans
• Refinancing loans of VA mortgages do not require additional underwriting.
Potential buyers who fit into at least one of the following categories may be eligible for participation in the VA Loan Guaranty Program:
• Members of the military on active duty – or who have served in the military for at least 181 days on active duty – or who have served three months during time of war
• Individuals who have served in the National Guard or Reserves for at least six years
• Spouses of those in the military either killed in active duty or who died as a result of disability connected to service in the military.
In order to apply for the VA Loan Guaranty Program, Veterans may download appropriate forms from http://vip.vba.va.gov . Veterans and spouses may contact 1-888-244-6711 for help with eligibility information.
Lenders who are approved by the VA will work with veterans to help them obtain and complete eligibility forms.
Author: Tasha is the marketing director for Dallas Apartment Locating firm Rental Cash Back. With access to 1000s of Uptown Dallas Apartment properties.
