A Lesson for Vets: It's Time to Use the VA Loan Program
There are some 25 million living Veterans in the United States, many of whom have failed to take advantage of one of their most important VA benefits - a VA loan. While current legislation to increase the use of other discount funding programs like the FHA is tied up in Congress, veterans and active-duty military personnel are being encouraged to take advantage of the longstanding benefits of the VA Home Loan Program.
(PRWEB) November 29, 2006 -- There are some 25 million living veterans in the United States today, nearly all of whom are eligible for a VA home loan. In 2005, however, only 165,000 VA loans were funded. The government is currently working on improving the presence of a similiar instrument, the FHA loan, but the VA Home Loan Program is where our veterans should turn their attention - and it's been running steady for nearly 60 years.
What are the benefits of a VA loan? For starters, VA loans require no down payment and often times can come with no money out of pocket all together. They also are not as stringent when it comes to considering the puchasers' income or debt ratios. The only true cost that can come into play is the closing costs, which of course can be negotiated with the seller. VA loans are thus catered to first-time home buyers, but are also beneficial for repeat buyers or veterans wishing to refinance to lower their rate or get cash out.
VA loans are backed by the Department of Veterans Affairs, however, the VA itself does not loan the money out. For 2006, the loan limits for a VA loan was set at $417,000. A no-money-down home loan with a limit that high that is not requiring a high rate second mortgage is unheard of in the conventional world. It's tough to believe that only 165,000 of them were originated in '05. While vets are typically kept up-to-date on their many VA Benefits, which also include health, pay, and educational benefits through the Montgomery GI Bill, it's important that they and their families at least explore the benefits afforded by the VA Home Loan Program when they head out to purchase their first home.
Another nice benefit of a VA loan is the absence of private mortgage insurance (PMI), which most conventional borrowers must pay on loans greater than 80% of the purchase price. Instead, VA loans require a funding fee to cover their risk of guaranteeing the loan. Normally the added cost of the funding fee is still considerably less than the added cost of PMI and is also tax deductible. It is important to note that the funding fee is not required for veterans who were disabled in the line of duty.
So, become one of the millions of veterans to take advantage of this program since its inception way back in the 1940's. Learn more about how to obtain a Certificate of Eligibility from the VA's offices, or simply visit the VA for more information on the program.
# # #
Post Comment:
Trackback URL: http://www.prweb.com/pingpr.php/TG92ZS1JbnNlLVNxdWEtSW5zZS1NYWduLVplcm8=
Bookmark -
Del.icio.us |
Furl It |
Technorati |
Ask |
MyWeb |
Propeller |
Live Bookmarks |
Newsvine |
TailRank |
Reddit |
Slashdot |
Digg |
Stumbleupon |
Google Bookmarks |
Sphere |
Blink It |
Spurl
|
