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Bio Statement Guaranteed Installment Loans For Bad Credit Acquire A Home Through Va Mortgage Loannon payday loans for bad credit

One of the many benefits of being in the military is to be granted the privilege to acquire their dream home. Since 1944, the VA mortgage loan has been there to help military personnel fulfill their dream of home ownership.

The Veterans Affairs mortgage loan or commonly known as VA loan has been considered as the most flexible type of mortgage loan. In a nutshell, it gives financial security to lenders as the VA pledges to repay roughly 25% of each loan it guarantees should the borrower default in payment. Thus, it offers great package of terms and rates for qualified veterans. If you are in active military service with over 6 months of tenure or at least 6 years as Reserve personnel or if you are a widowed spouse of a military man then you qualify for a VA loan. All you need to do is to secure a formal document which shows your entitlement and eligibility to participate in this program. This is document is called Certificate of Eligibility given by the VA office.

Major benefits of VA Loan

Unlike conventional mortgage loans that are guaranteed, one of the major benefits of VA non payday loans for bad credit is its no down payment requirement. This is apart from the availability of 100% financing, competitive interest rates, zero private mortgage insurance, zero prepayment penalties, and structured refinancing loans that do not need extra underwriting.

Ironically, very few veterans have taken advantage of the VA mortgage really bad credit installment loans benefits despite its broad eligibility requirements. It appeared that there most veterans were unaware of its existence and features.

Although there are no down payment or closing costs, there are some fees that veterans need to shoulder such as appraisals fees and funding fee that is imposed on each loan. This is meant to pay for VA Loan Guaranty Program cost.

Other purposes of the VA Loan

Basically, the VA mortgage loan is meant to truly help military service men to sustain their family's needs hence it is not limited for use in purchasing residential properties. There are other ways on how this type of loan can help such as refinancing an existing direct loan to reduce interest rates at present, refinancing for cash, home improvement, purchase other real estate properties to be owned by the veteran such as single family condo unit, modular home and farm residence. Nevertheless, it is not allowed to be used in purchasing investment properties. The goal is to give the veterans a home not something else like making them business owners through their real estate property.

Reasons that made VA loan unpopular

With its great goal to support military service men, then and now, there are some reasons why applying for a VA loan is not a smart choice. One of the reasons is the interest rates which if applied in a shorter timeline will cost more than the usual conventional loan. Thus, from a lender's perspective, it is not ideal to opt for VA loan since they will have to shoulder most of the closing cost which is conventionally shouldered by buyers. Nonetheless, for our military heroes, this loan must be the best fit for them.

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