VA Loans is a special kind of loan made available to veterans in the United States as a means to give them access to a mortgage loan at a cheaper rate. The loan was established by the Department of Veterans Administration. So, the VA in the VA Loans stands for Veterans Administration. This organization is responsible for setting all the criteria that guides the qualification for this loan. The organization sets the qualifying standards for the loan and equally dictates all the terms and rules of the loan. Be that as it may, the Veteran Association is not the one that handles the financing.
The money for the loan is given to the borrower by private lenders. Examples of private lenders are mortgage companies and banks. Both veteran and active service personnel can benefit from the loan, as well as, their family members. It is issued by private lenders as we mentioned earlier, but it is backed and regulated by the federal government. There terms of the loan ar5e generous as a way of rewarding the veterans and active servicemen for their sacrifice to the country. Some of the generous terms are:
- Limited closing costs
- No prepayment penalties
- No mortgage insurance
- No down payment
VA Loan Purchase Qualifier This no-down-payment loan option was created especially for qualified veterans, service members and their spouses.
VA loans are backed, or guaranteed, by the Department of Veterans Affairs. There are different loan types with fixed or adjustable interest rates, and a range of loan terms.
How does the loan work?
The main focus of the loan is to help the veterans and their family members to become homeowners. For an individual to be eligible, he or she needs to present a certificate of eligibility from the Veterans Administration (VA). The lender will then peruse the certificate to determine its acceptability or lack thereof. Bear in mind that the borrower also needs to qualify for some underwritten requirements particular to that lender. Despite the series of eligibility processing, qualification for the VA Loans is still way easier than what obtains in the conventional loan.
VA Loans can be used for several purposes related to homes. For example, it can be used for repairing a home. It can also be used for building or buying a home. If you like, you can use it for adapting or even retaining a home for personal occupancy. The loan offers the borrower up to 100% financing on the market value of that home.
Partner with us
If you want to apply for VA Loan, but you do not know where to turn, you should not hesitate to come over to us at Mission Pacific Mortgage and we will be most willing to assist you. You can always rely on us for all your mortgage related needs and we will never disappoint you. We have trained professionals at our outlet, who have what it takes to assist you every step of the way and make the loan easily accessible to you. If you are looking for a trustworthy mortgage loan lenders, you have come to the right outlet if you partner with us. We have never been known to disappoint our clients and we will surely not disappoint you when you patronize our services. All you need to do is to get in touch with our loan officers today and they will take it up from there.