The Secret Advantage For Getting A VA Home Loan
A military man or a woman who has served can get a VA home loan after completing their required service in the military. That is, if they want to buy a home. But they also have to qualify through their credit rating and of course, have a house they want to buy.
VA home loan have some advantages but at the same time the have some disadvantages. The main disadvantage is the approval for this type of financing. Your credit rating must be of high value and you must serve at least 180 days in peacetime or 90 days of wartime just to qualify for the home loan.
The VA has to approve the lending and lenders, meaning the bank or savings and loan company. There is a restriction on the number of lenders the military personnel have to work with. It also takes up to 30 days from the time the application is accepted to get a response. There are also the closing costs, if not paid by the seller, it leaves little room for price negotiation. However, some think the advantages are well worth the effort it takes to get a VA loan.
The best advantage is the low interest rate for a VA home loan. The terms of the loan are designed to help the military personnel so they don’t get into any financial trouble. Some loans will take on the selling cost, closing costs and the down payment. Just these advantages alone can save you hundreds of dollar on the financing each month.
A VA home loan will give you a chance to have house when you might not be able to get financing from any other source. It also helps when you don’t have to come up with a down payment. However, the loans can be for more the just a home. You can also get loans for debt consolidation, to start a new business, or even a loan to refinance a home. A VA home loan can also be used to start a savings account or to remodel your house or business.
One more advantage a VA home loan can give you is if your credit rating is very bad. The VA factors in many things such as defaults on other loans, factors other lenders would consider a bad risk. Since the VA is a guarantor of the loan, that is, they act as a co-signer, which makes bad credit rating a low risk for lender. The VA helps to ensure the borrower will repay the money.
When you get a low interest rate loan from the VA it allows you to have not only more money at the time of the loan but it also gives you a loan time (repayment) you can’t get any other place. That means instead of taking out a loan from a bank for 20 years, you can get the same loan from the VA for 10 year repayment.
There are a lot of factor you need to consider when applying for a home loan. You need to think about the repayment schedule, interest rate, how much you need, and what you’re going to do with the loan. After all these factor are evaluated then you know the advantages of getting a VA home loan will be worth the effort.
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