VA home loans
VA home loan program is to help veterans of the United States armed forces finance purchase of a home. As against conventional loan VA home loan the rate of interest is competitive with the rate charged on other type of mortgage. The term veteran here included certain members of the Selected Reserve, active duty service personnel and certain categories of spouses. These loans are provided by the banks and mortgage companies and the Veterans administration guarantees a portion of each loan if the borrower defaults. The lenders investment is protected more than the conventional loan.
The va guarantees 50 percent of home loan upto $45,000.The current maximum entiltlement for loans are uto $144 000is $36000 above $ 144000 is 25 percent upto $60 000..
This ti the amout the VA promises to pay the lender if your default on your loans. If you default VA may pursue you to recover those funds.
VA loan benefits: No down payment requirement unless the purchase price si more than the rea the purchase price is more than the reasonable value of the property as determined by VA, or the loan is made with graduated payment features
More favorable interest rates are usually offered by lenders because of the VA's guaranty.
Ability to finance funding fee
No mortgage insurance premiums
Maximum loan amount may be 100% of appraised value of home, determined by a VA-approved appraiser or up to four times the VA eligibility entitlement (currently $50,750 with a maximum loan amount of $200,300).
Negotiable fixed rate interest rate.
Right to prepay without penalty.
For more dtails on home lona you can call
You may call the Federal Citizen Information Center at 1-800-FED-INFO (1-800-333-4636). Calls are answered Monday through Friday, 8 a.m. to 8 p.m., eastern time. (last updated )
For requirement of VA loan
You must be a eligible veteran .
You should have good credit record.
You should intend to occupy the house.
Children of diseased are not eligible for va home loan. Spouse are eligible provided they meet certain conditions.
