There are many factors involved in obtaining a Veteran's Administration (VA) loan and often first time homebuyers are either misinformed or ignorant about them. It is important to know that the Veterans Administration (VA) guarantees the loans to veterans who meet specific requirements, but it does not act as the lending agent. Consult a credit counselor and find out what your credit rating is before you apply for any type of loan. In this manner, you can accept or improve it and thus be prepared before applying for that guaranty.
There is a mandatory VA funding fee for first-time homebuyers. The idea that the veteran is contributing to the cost of his own mortgage and not relying on the taxpayer is the logic that is behind the mandatory fee. First time homebuyers pay a little over two percent for a "no money down" loan while the rate for a second time buyer is higher at three percent. It is assumed that second time borrowers will have earned equity in their home and that they have prepared for the extra cost incurred by the higher fee. Percentage schedules for VA refinance loans do not vary.
For a disabled veteran who suffers from a service-related disability and receives compensation for such, exemption from the funding fee is possible. Spouses of military men who died in the line of duty or from disability issues related to military service are entitled to other legal exemptions as well. The final decision concerning exemptions for each specific case lies with the VA.
Many applicants do not know that VA loans can be used for more than one purpose. You can buy a new home, make home improvements and augment energy-efficiency with the aid of a VA loan. Each VA loan contains its own particular method of distribution and limitations and knowing what they are beforehand improves the situation.
One of the most important factors in determining eligibility for a VA loan concerns the nature of the discharge. With a discharge other than "honorable", the process gets more complicated. Veterans who have had an other than "honorable" discharge should seek help from a local VA office as they can advise on whatever additional paper work is needed, where to send it and how to appeal a decision, should it be necessary.
You must provide copies of the DD214 form plus papers that verify you have either had your discharge upgraded or that you did not receive a dishonorable discharge in the first place. A VA home loan guaranty is dependent on the veteran's ability to handle monthly house payments.
There is a mandatory VA funding fee for first-time homebuyers. The idea that the veteran is contributing to the cost of his own mortgage and not relying on the taxpayer is the logic that is behind the mandatory fee. First time homebuyers pay a little over two percent for a "no money down" loan while the rate for a second time buyer is higher at three percent. It is assumed that second time borrowers will have earned equity in their home and that they have prepared for the extra cost incurred by the higher fee. Percentage schedules for VA refinance loans do not vary.
For a disabled veteran who suffers from a service-related disability and receives compensation for such, exemption from the funding fee is possible. Spouses of military men who died in the line of duty or from disability issues related to military service are entitled to other legal exemptions as well. The final decision concerning exemptions for each specific case lies with the VA.
Many applicants do not know that VA loans can be used for more than one purpose. You can buy a new home, make home improvements and augment energy-efficiency with the aid of a VA loan. Each VA loan contains its own particular method of distribution and limitations and knowing what they are beforehand improves the situation.
One of the most important factors in determining eligibility for a VA loan concerns the nature of the discharge. With a discharge other than "honorable", the process gets more complicated. Veterans who have had an other than "honorable" discharge should seek help from a local VA office as they can advise on whatever additional paper work is needed, where to send it and how to appeal a decision, should it be necessary.
You must provide copies of the DD214 form plus papers that verify you have either had your discharge upgraded or that you did not receive a dishonorable discharge in the first place. A VA home loan guaranty is dependent on the veteran's ability to handle monthly house payments.
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