Get VA Loan Mortgages and Save Money for Other Purposes

May 16, 2012 by  Filed under: Loans 

Veterans and those in active military service do not need to worry about buying a house or bringing their monthly amortization down through the VA mortgage loan rates. Sadly, not too many soldiers and veterans are taking advantage of this opportunity mainly because they do not understand the whole concept. This fear is not warranted even after the scare created when the housing bubble erupted in the U.S. rendering hundreds of thousands homeless and the term ‘refinancing’ took on a whole negative connotation.

Why is a VA loan rate affordable?

This forms part of the VA home loan guarantee program following the enactment of the GI Bill of Rights in 1944. But rather than releasing loans to millions of veterans and soldiers, the Department of Veterans Affairs instead is offering to shoulder a portion of the loan to allow banks and mortgage companies to extend the loan even to borrowers saddled with debt. The aim is to allow veterans and soldiers to “purchase and retain homes in recognition of their service to the Nation.” This program however doesn’t bind these private lending institutions into giving you the loan because what it does is to presume part of the risk of default.

What are the benefits of a VA mortgage loan rate?

The obvious benefit is your credit score would not matter much. In fact, most borrowers who inquire about VA loan mortgage rates will not even be considered for an interview if they apply for a conventional loan. Also, you can get your house at zero down payments and pre-qualify for up to $729,000 either in refinancing or new purchase in some selected locations. You also do not need to worry about closing costs and funding fee because they can be incorporated into the loan. In fact, you can have the seller assume at least 6% of the total closing cost.

Inquire about VA mortgage loan rate today

But first you must contact the Department of Veterans Affairs to secure your eligibility certificate. That is an important document for private lending institutions to consider you. If you do not know how, some lenders will walk you through all the requirements. After the usual background check your credit score and income, the final closing will take not even an hour to have all papers signed and delivered. You do not have to lose sleep on whether or not you can keep your house or buy a new one. Inquire about the VA loan rate that is best for you.

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