Veterans guide to VA loans
by Addison Corbin on Feb. 9th 2018
What is a VA loan?
The VA loan became know in 1944 through the original Servicemen’s Readjustment Act A.K.A the GI BILL. The GI Bill was signed into law by President Franklin D. Roosevelt and provided vets with a federally guaranteed home with no down payment. The GI Bill has contributed more than any other program in history to the welfare of veterans and their families, and to the growth of the nation’s economy.
What does the VA loan cover?
The VA will guarantee a max of 25 percent of a home loan amount up to 113,275, which limits the max loan amount to $453,100 Generally, the reasonable value of the property or the purchase price, whichever is less, plus the funding fee may be borrowed and credit/income requirements to be eligible.
Are you eligible for a Va loan?
-You have served 90 days of service during war time.
-You have served 181 days of continuous service during peacetime.
– You have 6 years of service in the National Guard or Reserves.
– You are the spouse of a service member who died in the line of duty or as a result of a service connected disability.
Who can do VA loans?
VA guaranteed loans are made by private lenders, such as banks, savings and loans, or mortgage companies to eligible veterans for their own personal occupancy. I would say nearly every lender can make a VA loan, which does NOT mean every lender should! Just like not every agent is a good agent.
Tip: Many Vets don’t know this, but many lenders will have special discounts and rebates for Vets.
Some agents will also do a veteran rebate on their commission! (So make sure to use an agent that does!) Here at The Corbin team we give a credit to the client and take it a step above and donate a portion of our proceeds to a local non profit veteran charity.
Benefits to using a VA loan
They are reusable – You can use the VA loan anytime as long as you pay off the loan each time.
They are available despite foreclosure or bankruptcy – Service members that has foreclosure or bankruptcy can still secure a VA loan. Even if that loan was a VA loan.
They are not issued by the VA – In a way you don’t have all the red tape of the government.
VA loan inspections are thorough – Which means that when they say yes to the house, it’s good to go!