Veteran Home Loans Regular Purchase

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VA – Home Loans – Regular Purchase are government loans sponsored by the VA aka United States Department of Veteran Affairs, which helps war veterans with housing related financing. The eligible veteran gets a mortgage without down payment at a very attractive interest rate. The VA does this by guaranteeing a percentage of the government loan and the guarantees are made for the purchase of stand-alone houses, condos and pre-fab or tract houses. The loans can also be refinanced. This loan primarily falls under the Veteran loans category, not housing in general. The market interest rate applies along with VA funding fee. There are no pre-payment penalties in these government loans. The maximum allowed term is thirty years and the loan has to be repaid on a monthly basis. There is no maximum loan amount.

We all know the meaning of the term veteran but in this context, the term veteran, apart from actual veterans, is also used to refer to candidates who are actively serving at present, current and reserve guard members who’ve completed six years of service and also includes spouses under certain special conditions. Commissioned officers who are serving in the National Oceanic and Atmospheric Administration and the Public Health Service are also considered veterans and active duty members after they are discharged, depending upon length of service. Dishonorable discharges are not entertained.

A valid certificate of eligibility is required to apply for Veteran loans under the VA – Home Loans – Regular Purchase scheme and one can be obtained from the United States Department of Veteran Affairs or the lender itself under the ACE – Automated Certificate of Eligibility program. Your lender can guide you with obtaining the certificate or you can download form 26-1880 and mail it with accompanying relevant documents to the Winston-Salem Eligibility Center. Before offering government loans under this scheme, the lender has to ensure that you meet the necessary requirements. The loan must be for the house that the applicant resides and not for renting our leasing out to a third party. The house must appraise for the loan amount of higher than the loan amount. You must show your ability to still be able to meet daily requirements whilst making the loan repayments. A bad credit record can get you disqualified. The lender can aid you with the pre-qualification process and help you with assessment of your credit report. Make sure you apply for an optimal amount that best meets your requirements.