VA loans are specially designed to offer financial help for the veterans by the Department of Veteran affairs. VA loan is a great benefit to many veterans and it enables the warriors of the country to buy homes under lower interest rates compared to many commercial loan programs. Under the VA loan category falls the VA streamline refinance loan which is otherwise known as Interest Rate Reduction Refinance loan abbreviated as IRRRL.
Qualification Criteria for VA loans
To be qualified for a VA loan a veteran should have served in the military for a specified number of days and should obtain a certificate of eligibility (COE) along with a good credit score and sufficient income. A spouse of a veteran can also qualify for a VA loan provided they meet certain conditions listed under department of veteran’s affair. Since VA loan mortgage rates are very less compared to any conventional loan program, it offers a lot of good benefits to help the brave warriors achieve the dream of owning a home. VA loans can also used for making home improvements, doing energy efficient alterations or to buy a lot.
Streamline loans for more Benefit
After a veteran buys a home using the VA loans, he/she has the option of refinancing their home using VA streamline loan program. Eligibility requirements for this loan are not as stringent as it is for obtaining VA loans. All it requires is that the homeowner should reside in the home that was bought using VA loan and he/she should not have a history of more than one ‘thirty day’ late mortgage payment in the past one year. Only veterans who have a regular VA loan are eligible for this refinance program which offers a chance to save money on interest paid on a mortgage. A veteran who has a conventional mortgage will not be able to obtain a refinance loan.
Things to do Before Applying for a loan
If you are a first time home buyer, consider getting a free counseling from the department of housing and urban development. This will give you an idea about the whole home buying process and debt management. Apart from offering lower VA loan mortgage rates, it also collects a funding fee from the home buyers to reduce the risk to the tax payers. A veteran also has an option of reusing the VA loan provided he/she has repaid the loan amount and sold the home and the good news is this benefit can be used a number of times. Since applying for a VA loan is not a cumbersome process, all you have to do is a little research and you will be on your way to buying your first home
Buying your Very First Home with VA Loans