VA Loans: What to Expect

One of the major advantages associated with being in the military is having access to the VA loan. This is a loan that is available only to military men or women or veterans. It can allow either group to buy or refinance a house without the typical hassles civilians have to undergo when working with normal mortgage companies.

Why should a military person be happy at the thought of being eligible for a VA loan? Well, first of all military men and women do not have to worry about a down payment when utilizing a VA loan. This is extremely beneficial, since normally individuals interested in buying a home may have to put down as much as 20 percent in order to qualify for a mortgage loans. This is an amount that can be tens of thousands. And even individuals that can get the civilian equivalent of a no-down mortgage loan still have to pay something in fees. VA loan participants don’t have to worry about paying a dime.

Another advantage to the VA loan is in the area of credit scores. Military personnel can get away with having a lesser credit score when applying for a VA loan than they could if they applied for a conventional loan. The government has put great emphasis on making sure the VA loan can reward virtually all types of military men and women, who deserve to at least be able to own their own home when they return from a deployment. This is not to say that military men and women don’t get turned down for a VA loan, but they have a much greater likelihood for getting approved because of their service.

What are the requirements to be eligible for a VA loan? First and foremost obviously one must have served in the military for at least six months or in the case of the Reserves, six years. If one is a Veteran that did not retire because their contract was up, they must’ve received an honorable discharge. In the situations where a serviceperson died during combat, their spouses are also eligible for a VA loan, so long as they have not remarried.

Once a person meets the minimum requirements for getting a VA loan, they will need to meet secondary requirements to be more likely to get the loan. VA loan officers will evaluate the serviceperson’s employment history and their credit record. They will consider any alimony or child support payments, whether they are being given as income or being paid out. They’ll look at annuities and any other resource in which one has earned money.

To apply for a VA loan, a serviceperson can visit VA.gov or call 888-244-6711. They will need to fill out a great deal of paperwork, but this tends to be typical in the mortgage or refinancing process anyway. Once the paperwork has been filled out and submitted, the serviceperson will have to meet with a VA loan officer, who will discuss the options that are available to them.

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