Own a Home with a VA Loan

Own a Home with a VA Loan

Posted on 02. Jun, 2016 by in home improvement

For those who have sacrificed to serve the United States by serving in the military, there are many programs that are designed to reward them and their loved ones for their service. One of the least known and most valuable benefits is the VA Loan. This is a program that is designed to allow veterans to finance or refinance their home at great prices. There are many benefits of getting a VA loan and working with the right institution like Flagship Financial will help secure the right funding that you deserve.

Why VA Loans?
When it comes to getting a mortgage one of the few options with no down payments is a VA loan. These loans are much easier to qualify for than conventional mortgages and are available to all of the more than 22 million active military members and veterans. The loans are made through a private lender as the U.S. Department of Veterans Affairs is not a direct lender or a bank. As long as all the guidelines are met there they are partially guaranteed. In 2015, the VA has guaranteed over 631,000 loans through the program. It is a great benefit to vets. If you have a question about your eligibility then doesn’t hesitate to contact Flagship Financial and see where you stand.

Who is Eligible?
The simple answer is almost all members of the military, reservists, National Guard and veterans are eligible to apply for the no money down loans. If you are the spouse of a military member who died while on active duty, you are also eligible to apply. It takes about six months of service for an active duty member to qualify. A National Guard member or reservist has to wait six years to be able to apply. That can change for reservists if they are called to active duty, it takes about 181 days of service to become eligible. Flagship will be able to help you understand if you are eligible or not. In most cases, if you were in the military in any capacity, you are eligible.

The Advantages of a VA Loan
The biggest advantage for a VA loan is that it can be obtained with little or no money down. This may be the only type of home mortgage that allows for this. Another great feature is that VA loans don’t require mortgage insurance. Most other loans with less than 20 percent down require an additional fee for mortgage insurance. That could save a homeowner as much as $200 a month in fees. This is a great advantage for veterans over the typical mortgage lenders.

Some Other Factors
Although there isn’t any set requirement for a credit score, most of the lending institutions have a very low threshold requirement. Often that number is around 620, but it varies from institution to institution. Checking with Flagship about your credit will clear up all the details here. There also could be a one-time funding fee, which varies in the amount due to how much money is being put in a down payment and what type of veteran you happen to be. The fee for a first-time buyer is around 2.15% of the total loan amount. With a 10% down payment, the fee is reduced to 1.25%.

See Your Lender Today
It seems a shame to have this great opportunity available for veterans and have many not be aware of it. The first step is to visit a financial lender like Flagship and see if you are eligible to secure a VA loan for your home and family. There are few programs which are designed to assist veterans as much as this one. It is one of the great ways that our government says thank you for your service. You have earned it.

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