There is a special type of loan for home buyers that qualify known as a VA loan, or Veterans Assistance. This loan is for past or present members of the US armed forces. Basically a portion of your loan would be covered through the VA program and would help to protect the investor if the borrower should have a problem paying.

There are two options for VA loans and both depend on price. If you are applying for a home loan that is up to but not over $144,000 then the VA will supply you with 36,000. If you are applying for a loan that is over $144,000 the VA will supply you with no more than $60,000.

As long as you have served 181 days of peacetime service without dishonorable discharge or you have served any wartime in the following wars you should be eligible for a VA loan.

• World War II
• Korean Conflict
• Vietnam Era
• Persian Gulf War
• Afghanistan and Iraq

Finally if you are currently enlisted or were after 1980 or were an Officer after the year of 1981 and served a minimum of two years you should be eligible.

If you were in the Reserves and National Guard and served the full six year term with an honorable discharge may also be eligible for this type of loan.

If you are a surviving spouse of a veteran that died while serving you should also be eligible to receive VA assistance.

There are many benefits to receiving a Veterans Assistance loan. The main one being is that they offer full financing and you normally do not have to worry about a down payment. Private mortgage insurance is not anything you have to deal with either. Not only are the interest rates highly competitive but you will not be forced to repay any penalties should the loan be paid early. Finally loans are easier to get with VA backing and the sellers are able to pay all associated closing costs.

Unfortunately with all good things do come bad things as well. There are a few possible negatives to receiving a VA loan. One of the main problems is processing. A VA loan will take a slightly longer time to process than a conventional or traditional loan will take. Many people are not interested to wait this extra time if there home is being sought after by others so this can make some sellers not want to work with you.

If the seller is paying some or all of the associated closing costs they may not be willing to work with you on the negotiation of the price.

A VA loan can be very helpful in getting you a loan if you need the assistance and can qualify for their terms. If you have any questions or need any assistance please let us know. Our team will do everything they can to help you out in your journey to purchase a new home.