VA Home Mortgage

A VA home mortgage is a home loan for a new home purchase of refinance that is guaranteed by the Department of Veterans Affairs (VA). Home loan borrowers can apply for a VA mortgage loan with any mortgage lender that participates in the VA home loan program.

The VA home loan program was established to ensure there is a supply of home financing to eligible veterans. In order to be eligible for VA mortgage loan, the borrower must meet one of the following eligibility requirements: military veterans, active duty personnel, certain military reservists and National Guard members, surviving spouses of persons who die on active duty or die as a result of service-connected disabilities, certain spouses of active duty personnel who are either missing in action, captured in the line of duty by a hostile force, or forcibly detained by a foreign government or power.

In order to process a VA mortgage loan request, the borrower will need to get a Certificate of Eligibility from the VA to prove to the mortgage lender that they are eligible for a VA loan.

Potential home loan borrowers that are looking to utilize the VA loan program need to apply with a bank or mortgage lender that offers VA home loans. As long as the loan request meets the VA loan program guidelines, the VA provides an insurance guarantee to the mortgage lender for losses they may incur due to a loan default by the borrower. The VA loan guaranty is the insurance provided to the mortgage lender to encourage lending to qualified veterans.

For qualified borrowers, there are a number of benefits that are available with VA home loans. Here are some advantages of the VA home loan program:

VA mortgage loans are available with no down payment. As long as the borrower qualifies in terms of income and credit and the sales price doesn’t exceed the appraised value, the loan can be obtained with no down payment.

The borrower does not have to be a first-time homebuyer.

VA loan guidelines require that the loan cannot have a prepayment penalty and there are limits to the amount of closing costs that can be charged on the loan by the participating mortgage lenders.

The VA mortgage loan closing costs for a purchase transaction can be paid by the seller.

VA loans are available for owner occupied properties only, the borrower must live in the home as their primary residence.

All borrowers must qualify in terms of income and credit. Veterans can be turned down for a loan if they have less than satisfactory credit or their income is not sufficient to cover their debts and the loan request. Mortgage lenders that participate in the VA home loan programs must comply with VA income and credit standards.

To find current mortgage rate information on a variety of mortgage loans please refer to 15 year mortgage rates, 30 year mortgage rates, 10 year mortgage rates, FHA mortgage rates, jumbo mortgage rates or 20 year mortgage rates.

This entry was posted on Saturday, June 25th, 2011 at 2:18 am and is filed under Mortgage Information. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.