Learning The Steps To Applying For A VA Loan

By Jason Larrsohn


There are many returning veterans who are curious about how to apply for the benefits that are available to them due to their service in the military. Thanks to their honorable time served in the nation's armed services, these veterans are able to apply for and receive a host of benefits.

First of all, who can even qualify for a VA loan? That answer isn't hard to find: veterans, active-duty personnel, reservists, members of the National Guard and some surviving spouses are eligible for a VA loan. In contrast, many more people are eligible for FHA loans, as they require a low down payment. VA loans are usually the better option for a lot of military families because they cater specifically to that group; rates are great compared to other loans, because fewer people qualify.

Due to its being funded and insured by the federal government, VA home loans are more easily affordable to the average citizen, among other reasons, because with the backing of the government private lenders can offer the VA home loan with a lower down payment than they cannot offer on traditional home loans.

Traditional home loans require a down payment of twenty percent while a VA home loan can offer much lower down payments of around three percent. This difference in down payment means that a qualified veteran can receive a VA home loan for pennies on the dollar of a regular home loan down payment.

If you're not interested in a VA loan though, one of the best alternatives is a FHA loan. Practically every lender offers some version of FHA loans, whether they are a standard home loan or a FHA streamline loan to help them refinance.

The VA can't be involved in any legal actions regarding the loan. The buyer is responsible for keeping informed about their rights and responsibilities regarding new property purchases. If you're worried about something, it's always best to hire a lawyer or seek out an expert in property evaluation.

To determine eligibility, these present or past service members must submit a VA Form 26-1880 along with proof of service (DD Form 214, a statement of active duty, or proof of participation in the National Guard or Reserves) to the VA Eligibility Center, After reviewing the application and the forms, the Department of Veteran Affairs will determine if the candidate is qualified to receive a VA home loan benefit. Those who are found to be qualified to receive a VA home loan will then be able to proceed with the other steps in securing the loan.

In all, for veterans, members of the military still in the service, reserves or the National Guard and their families, the very best option for buying a home is a VA home loan. The second best would be a FHA loan, but mainly for those who don't qualify for the VA loan. When refinancing, many find FHA streamline loans a good option because there is no credit check, but it is again trumped by the amazing benefits that a family can get from a VA loan.




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