VA Loans FAQs: Need To Know
People that are interested in VA Loans need to know there are VA Loans FAQs that will be answered in the following article. VA Loans may be one of the best loan programs out there for the fact that there are no down payment requirements in order to obtain the loan and 100% financing is available. In addition to no money down options, there also isn’t a required mortgage insurance premium as seen on FHA and Conventional Loans. One of the other positive qualities of the VA Loan program is that the interest rates on these loans are some of, if not the lowest rates out there. Since they are government insured like FHA Loans, their interest rates are similar or even lower. They are also 100% lower in interest rates than Conventional Loans. The following points are VA Loans FAQs that you will get answers to.
VA Loans FAQs: Eligibility
As you could probably imagine, the one major hurdle for getting this loan is that it is only available to Veterans who served in the U.S. Armed Forces with a Certificate of Eligibility with an honorable discharge, the borrower must file VA Form 26-1880. It seems only fitting that people who risked their lives for our country are offered a great home loan that is sponsored by the Veteran’s Affairs or VA department. VA, just like FHA, insures loans for the mortgage lenders and does NOT originate loans. Since the VA insures these loans against default, this is why the interest rates offered are some of the lowest around.
Service Periods And Eligibility
Eligibility for wartime periods of services is listed below:
1. Vietnam era: Wartime period between 08/05/1964 through 05/07/1975
2. Persian Gulf, Afghanistan, and Iraq periods of service between 08/02/1990 to present
3. Veteran Administration eligibility requires that the candidate must complete 90 days or more on active duty service.
Eligibility for peacetime periods of services is listed below:
1. Period of peacetime services between 05/08.1975 to 08/01/1990
2. Veteran must have completed at least 181 days of continuous on active duty military service.
3. For military reserve members and members of the National Guard, they must have completed at least six years as members of the Selected Reserves.
4. Spouses of a prisoner of war or missing in action veteran is eligible as long as they have been a prisoner of war or missing in action for at least 90 days.
VA Loans FAQs: VA Lenders
One of the most misleading VA Loans FAQs is that who is sponsoring the advertisements you are seeing on television offering VA Loans. In 100% of these cases what you are seeing is a mortgage lender offering VA Loan origination but they mask their advertisements as if it is put out by the government or sponsored by the United States government. What you should be doing before locking in your VA Loan is to talk to many different lenders of VA Loans to ensure you are dealing with the right company for you that you feel the most comfortable with. Just by doing a simple Google search can do wonders for your research as you can get recent reviews of people who have used the lender in question.
VA Loans FAQs: Waiting Periods
A lot of VA Loans FAQs come with regards to how VA treats derogatory items on your credit report and history. Let’s go over the waiting periods for these items below:
– Short Sale: 2 Years
– Chapter 7 Bankruptcy: 2 Years after discharge date
– Foreclosure / Deed In Lieu: 2 years after sheriff’s sale or when property is out of your name
VA Loans FAQs: Interest Rate Reduction Refinance Loan
For current borrowers with VA loans, a lot of questions come up regarding IRRLs or Interest Rate Reduction Refinance Loans. The purpose of this loan is a VA Streamline Refinance Loan. A current borrower with a VA loan can do a rate and term refinance with minimal paperwork and documentation needed in order to complete. There are no closing costs and most loans will close within 30 days, however, the one caveat is that the result of the IRRL cannot result in an outstanding balance on the loan higher than your current balance. If so, you will have to make up the difference and put money down so that the loan will be approved.
VA Loans FAQs: Find A Professional
If you are looking for a professional dealing with VA Loans, then you need to call me today at 888-900-1020 and we can get the process started on getting your pre-approval and start your home buying process. Also, please feel free to visit my website www.loanconsultants.