VA Home Loan Lenders

A VA home loan is a type of mortgage that is backed by the U.S. Department of Veteran Affairs and is designed to provide long-term financing to eligible veterans that have served in the military, as well as their surviving spouses (as long as they are not remarried). The program has been offering financial assistance to veterans since 1944, and since then has helped more than 18 million veterans purchase their homes. Unfortunately, according to a survey conducted by the Department of Veteran Affairs in 2004, approximately 20% of veterans did not even know that VA home loans existed and that they were eligible for benefits. Furthermore, less than 10% of America’s 25 million veterans have taken advantage of the VA home loan program, leaving many more to rent their residence and depend on monthly federal assistance. If you’ve just discovered the VA home loan program, consider the following paragraphs to learn if it would be beneficial for you to apply for a VA home loan.

What Are the Advantages of Dealing with VA Home Loan Lenders?
For most veterans, dealing with VA home loan lenders is the most ideal option because they are able to receive the most appealing loan terms and conditions, as well as some of the best rates on the market. In addition, the Department of Veteran Affairs promises to pay approximately 25% of every VA loan in the event that the borrower is unable to make repayments. This guarantee gives VA lenders the confidence and security needed to offer some of the best terms and conditions in the home loan industry. VA home loan lenders are some of the only lenders that offer financing that will cover 100% of the property purchase price, and are therefore the best lenders for veterans to consult. In fact, studies have shown that approximately 80% of veterans that were approved for VA home loans could not have received approval for a conventional loan, yet were able to receive extensive financing through the VA program. Finally, VA home loan lenders offer loans that do not require the borrower to pay for private mortgage insurance, a monthly expense that can account for up to 20% of the total loan amount, which the majority of conventional borrowers are forced to pay.

Who Can Receive Financial Assistance from VA Home Loan Lenders?
Anyone that was a member of the military who served at least 181 days in active-duty or three months in active-duty during wartime are eligible to receive assistance from VA home loan lenders. In addition, anyone that has spent at least six years in the National Guard or Reserves can also obtain a VA home loan. Finally, the spouses of anyone killed in the line of duty can take advantage of the benefits offered by VA home loans. In order to receive financial assistance from VA home loan lenders you would need to obtain a certificate of eligibility from the Department of Veteran Affairs, which is a formal document that provides verification that the borrower is entitled to VA benefits.

When You Should Not Seek the Assistance of VA Home Loan Lenders
Although dealing with VA home loan lenders is the best solution for the majority of veterans, those that have more money to invest and/or an exceptional credit score may be able to find lower interest rates than those offered on VA loans. In addition, even if you are able to obtain financing from VA home loan lenders, some property sellers do not like selling to veterans that use VA assistance because the Department of Veteran Affairs covers all or almost all of the property closing costs.