Last year, the VA loan program experienced one of its most successful years in history, as it reached its 20 millionth loan and increased its loans by 50 percent.
Chicago, IL (PRWEB) April 17, 2013
Within the past few years, The Federal Savings Bank has found that the financing options for veterans to obtain VA loans has become readily available and more accessible. VA loans have given families and veterans the opportunity to cash in on some of the most cost-friendly down payment opportunities as well as streamlined refinancing strategies for years. Although VA home loans have been able to help veterans acquire low-to-zero down payment rates for the past 70 years, the programs are increasingly becoming more valuable for qualified individuals in this day and age more than ever before. Last year, the VA loan program experienced one of its most successful years in history, as it reached its 20 millionth loan and increased its loans by 50 percent.
One of the reasons for an increase might be due to the fact that there have been more restrictions placed on conventional home loans due to a series of economic shortfalls. While traditional lenders may demand as high as 20 percent on a home down payment, VA loans generally require no money up front, which is one of the main reasons eligible families have sought the assistance of such programs for so many decades. This way the families can focus on getting their lives back in order rather than figuring out ways to maintain a substantial FICO score.
Requirements necessary for obtaining a VA loan
VA borrowers must be aware of the fact that the loans are insured and aren't financially supported by the VA, which ultimately means that they must go through a traditional lender once they get the go ahead from the VA. There is an overhead cost of 1 to 3 percent of the property's value that will be added for VA loans, which can generally be negotiated with lenders and paid off over a set period of time. In order to obtain a VA loan, the borrower will have to have a credit score of at least 620, which is significantly lower than the average denied score of 669. The programs are especially helpful to first-time homebuyers, who might not have an adequate credit score to put money down through a traditional program.
Brian Maier, broker and owner of Raintree Mortgage, a Las Vegas mortgage company specializing in VA Loans, said the loan programs are most effective because they have proven their value over the years.
"VA loans provide a fantastic opportunity for veterans returning from overseas who are looking to move their family into a home without having to worry about high down payment overhead," he said. "They're also a savvy and affordable option for military families looking to save on streamline refinancing."
Those who are interested in obtaining a VA loan can send an eligibility request to see if they qualify first. Whether or not they are will depend largely on several factors, including whether or not they will have to have a co-signer as well as income and occupancy requirements. Once this has been determined, they will be able to move forward with their goals in financing a home.
The Federal Savings Bank emphasizes to its perspective clients and applicants to apply and get the paperwork completed as soon as possible because interest rates will not remain low for long. In addition, housing prices are continuing to rise. Housing starts just topped estimates on Tuesday signaling that the housing recovery continues to gain momentum, implying probable higher prices next month. To eliminate the risk of higher interest rates and/or higher property values before a purchase veterans should get approved quickly. Getting approved for a VA loan also lets the veteran know how much of a home he/she can afford which helps with filtering property listings. For more information please visit: TheFederalSavingsBank.com