Saturday, December 28, 2013

How To Access Veteran Home Loan

By Harriett Crosby


Veteran home loan aims at providing decent housing to service men who are currently serving or already released from the force. Applicants pay their dues through the benefits they get out of their service. Eligibility criteria are skewed to favor service men considering that they serve the nation under special circumstances. The scheme ensures that they enjoy decent and dream houses through a special provision.

It is a requirement that an eligible applicant should have served 90 concurrent days in war. Those who have not served in the war should have been engaged for 181 continuous days in the force. Members of the National Guard are required to have worked for more than six years in order to be eligible. Reservists must have served for six years if they are to qualify.

There is a provision that allows spouses of members who die in the line of duty to benefit. Similar exemption is allowed if the spouse was disabled at work. The Department of Veteran Affairs issues a certificate of eligibility. This is the document that explains the possessions that make a person eligible to access the funds. The process can commence without the certificate at hand.

The certificate of eligibility can be filled and downloaded from the website on veteran administration. Additional requirements are set by private lenders beyond the demands of VA. The requirements include income, debts and credit ratings. The score is pulled from the leading agencies in order to calculate the debt to income ratio. It is a requirement that successful applicants should not have left the force in disgrace.

Veterans stand to reap huge rewards from the VA mortgage. No down payment is demanded before the funds are released. This is in recognition of the fact that service men are always on the move and they might find it difficult to save regularly. The backing of the government also means that no private mortgage insurance is required. The rates and terms provided are competitive.

Basic allowance for housing available to service men is considered as income. It thus can be used to partially or fully clear your monthly installment. The amount varies from one person to the other depending on job grade, number of dependents and geographical location. A unique aspect of the loans regarding interest is the fact that no charges will be deducted in case you decide to pay off the mortgage before due date. The penalties charged by lenders in other schemes do not apply in this one.

The financing options available depend on the kind of home you wish to purchase. The Department of Agriculture finances individuals interested in a rural home and farming land. Applicants intending to fix energy efficient installations in their homes are financed by the Federation of Housing. It also caters for most of the first time buyers. Veterans can also enjoy market rates that are flexible and skewed to their needs.

Veteran home loan is design to offer a reprieve to service men. It has the backing of the government and leaders in the military. This is a big good will boost and serves as an assurance that veterans will get value. The terms are flexible enough to accommodate the wishes and conditions of service men.




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