A U.S. Department of Veterans Affairs VA home loan is an important financial option for individuals who served in the nation’s armed forces. Purchasing a home is a major financial commitment. For many, the upfront expenses that are needed to buy a house can be prohibited. This is especially true for veterans who may not have been able to save as much as they would have liked while they were serving in the military.
In order to purchase a home, you need to have a good credit score and enough cash on hand to afford the down payment. If you cannot meet these traditional requirements, veterans home loans may be a good option for you. Due to the additional security that comes with these loans for veterans, you can obtain a loan with terms that are favorable to you in the years to come. However, it is important that you understand how this housing assistance program works to determine how it can benefit you.
What is the VA home loan option?
To obtain a traditional home loan with low interest rates, you need to be in good financial condition. This is because independent lenders, such as banks, issue loans to applicants who have demonstrated their financial responsibility. As a result, individuals with lower credit scores or shorter credit histories may be less likely to obtain a loan from a bank. This is because they cannot easily prove that they will pay back their loans.
With a VA home loan, however, the government guarantees a portion of the loan. This means that the VA promises to repay a portion of the loan, should the veteran be unable to pay it. With this additional security, lenders may be more likely to issue loans to veterans who may not otherwise have the credentials they need to receive a good offer. Additionally, there is a loan option where the VA serves as the mortgage lender. While there are certain VA home loan requirements individuals need to meet, this option is usually available to:
- Individuals who are currently serving in the military.
- Surviving spouses who meet specific requirements.
Learn About Properties Acquired by Terminated Veterans Home Loans
Beyond receiving VA home loan benefits, there are additional services available to veterans to help them save money when they buy a house. One of these benefits is the ability to purchase houses that the VA required as the result of terminated loans. This veteran housing option is available to individuals who want to purchase houses at a price that may be lower than standard market value. These properties are managed through Vendor Resource Management (VRM).
Regardless of whether you meet the VA home eligibility requirements, you can search for properties using the VRM’s site. In fact, you can find your next home by searching based on:
- Where the property is located.
- How many beds and bathrooms are in the house.
- How much the house costs.
How a VA House Loan Can Help You During a Natural Disaster
VA loans benefits may also be available to you during a natural disaster. If you are affected by a hurricane, flood or other similar devastation, the VA can help you determine the steps you need to take to repair your home. If you have a VA home loan, you are still responsible for making your monthly mortgage payments. This is true even if your house was damaged due to the disaster. However, if the disaster affects your ability to make your payment, you can contact the lender and discuss loan modification options.
During these situations, you can also contact the VA home loan department and discuss your specific circumstances. Loan Specialists are available to help you determine which option will be most beneficial to you as you move forward with your loan.