If you’ve served this country in some capacity, then you will qualify for a veteran based specialized loan. These programs allow veterans to benefit from their service, when they are no longer able to work.
Defining A Veteran Loan
A VA loan is a loan that is available to a veteran with lower interest rates and payments, as a way for governments and loan providers to thank them for their service with a benefit. It will allow veterans to become home owners without needing a higher credit score or a down payment.
There are a few requirements to be eligible, such as not being dishonorably discharged, and serving a number of years. During the financial crisis of 2008, this was the only way to obtain a mortgage without a down payment.
Am I Eligible For A VA Loan?
To beeligible for a VA loan, you need to have served at least 90 consecutive days during wartime, or at least 181 days when there is peace. You’re covered if you’re from the army, air force, marines or navy. It covers the national guard and reserves, as long as you have served for at least six years.
You should speak to a VA loan specialist who can inform you of your specific personal information to find out what you can get, as there are a range of different programs available. You can use a VA mortgage calculator to find out how much it will cost you in monthly payments to purchase a home.
A spouse of a veteranis also eligible for a VA loan, if their partner had passed away either during service or after from an injury they sustained. You can work with a provider to earn a VA Loan Certificate of Eligibility, known as a COE.
The Different Type Of VA Loans
VA loans are designed to help veterans continue their life away from service, with help to buy, build or improve a home, through a direct home loan. This loan is with a lender, that requires no down payment. There is the cash-out refinance loan, which allows a veteran to cash out on some of their home equity to help pay off debts, school fees or other important needs.
If you’re a Native American veteran, or a veteran who is married to a Native American, then you will be able to apply to the Native American Direct loan. This isknown as a NADL, which allows you to buy, build or improve a home on a federal trust piece of land.
There is also the IRRRL, which is the Interest Rate Reduction Refinance Loan. This is similar to a cash-out refinance loan, that aims to assist those who already have an existing VA backed home loan, with the aim to reduce monthly payments and make them more stable.