How Can You Know If You Are Eligible For A VA Loan

VA loans can be especially time consuming and many times first-time homebuyers misconstrue how they work. It is imperative to know that the Veterans Administration (VA) guarantees the mortgage loans to veterans who meet exact qualification, however it does not act as the lending agent. Consult a credit counselor and find out what your credit rating is before you apply for any kind of loan. In this way, you can either accept or work on it and thus be prepared before applying for the guaranty.

There is a mandatory VA funding fee for first-time homebuyers. The idea that the veteran is adding to the cost of his own mortgage and not relying on the taxpayer is the reason for the obligatory fee. A fee of two percent is charged for "no down payment" loans to first-time homeowners, but it is three percent for veterans purchasing a second home. The reason for the greater fee for second-time owner is about presumed equity in the property and/or time to save up for the extra cost. Percentage schedules for VA refinance loans do not differ.

For a disabled veteran who suffers from a service-related injury and receives compensation for such, exemption from the funding fee is possible. Spouses of military men who died in the line of service or from injury complications connected to military service are permitted to additional legal exemptions as well. Each case is examined individually and final say on all exceptions is the right of the VA.

VA mortgage loans are amazingly flexible. You can purchase a new home, do home improvements and enhance energy efficiency with the aid of a VA loan. It is always a great idea to ask about the limitations and allowances each VA loan can offer.

One of the most significant factors in determining eligibility for a VA loan is the nature of the discharge. The mortgage loan experience becomes more and more difficult when a discharge is less than "honorable." A local VA office can assist those who might have had other than an "honorable" discharge with filing the proper paperwork, finding out where to send them and knowing how to appeal a decision, if needed.

The proper papers confirming the true conditions of the discharge or its updated standing need to be provided as well as several copies of the DD214 paperwork. A home loan guaranty is not given to any veteran who is unable to maintain monthly house payments.