San Diego, CA (PRWEB) June 28, 2013
LoanLove.com has a mission to help consumers and borrowers alike in obtaining the latest information on mortgage lending trends, the real-estate market and the U.S. financial landscape for the purpose of helping them obtain a home loan they love. The team at LoanLove.com is devoted to help empower both first time and experienced homeowners with valuable resources, first-class knowledge and connections to top-rated industry professionals. To fulfill this goal LoanLove.com is continually updating their website with new articles and guides. A new article on LoanLove.com answers the question “What is a VA loan?”
The article explains: “If you’ve served in the military or you’re currently on active duty and you’re interested in buying a home, a V.A. mortgage could be a great option for you. In a VA loan, a portion of the loan is underwritten – or guaranteed – by the U.S. Department of Veterans Affairs, which means lenders who write mortgages under the VA program assume less risk than they would under a conventional mortgage. Home buyers who qualify for a VA loan can buy their primary home with no down payment as long as the cost of the home is less than the home’s appraised value. And, although the actual entitlement is capped at $144,000, or roughly 25% of conforming loan limits, when the cost of the home exceeds the entitlement limit but still falls within the conforming limits (the current upper limit for a conforming loan is $625,000), VA borrowers may still be able to buy the home using the entitlement AND with no down payment.”
Clearly there are a lot of benefits to these types of loans, the primary one being, as mentioned, the low or no down payment required. However the advantages do not stop there. The Loan Love article also explains that the VA allows the seller to pay closing costs, which can mean big savings for the buyer; in fact, when the seller is willing to pay the VA loan closing costs, the buyer can walk way without having to put a single penny down. Private Mortgage Insurance will also not need to be paid by the homeowner. Aside from this, the borrower does not need to be a first time home buyer; this means veterans can take advantage of this loan type again and again. Lastly, the loan is assumable by other buyers who qualify for VA loans (other eligible former or current service members) which can be a big advantage if the borrower wants to sell the house eventually.
The few disadvantages of this type of loan all have to do with eligibility. Those who have been dishonorably discharged will not be able to qualify, but the terms of their discharge may be appealed and a positive change would allow them to avail of this type of loan. Also a decent credit score will be required; the actual requirements change regularly, so the borrower must check with their lender. The applicant will also need to submit a Certificate of Eligibility (COE) which can take time to get; those planning to take advantage of these types of loans should start the process to attain their certificate well in advance. And, of course, only veterans or active service members are able to qualify.
The Loan Love article ends by saying: “Although your circumstances can certainly vary, for most veterans and active-duty service members, the VA loan program is a great choice for a mortgage. Take a look at your finances, talk with your lender, and if you decide it’s right for you, don’t forget to apply early for your COE.”
For more information, visit LoanLove.com for the full article.