The United States Department of Veterans Affairs also known as VA was established around 1930 as a means to help servicemen who have served their country, from all branches of the military. The aim of the VA was to help servicemen who had completed their terms of duty find their feet in the civilian world with benefits like the GI Bill for those wanting to educate themselves, medical, life insurance, pension, home loans, etc.
Financial Help for Veterans
The biggest help that the VA provided the servicemen was the loan program which was initiated to finance veterans who wanted to purchase a home for themselves. The VA loan was eligible for veterans as a government guaranteed loan program which could be used by them or their family to buy a home with very favorable repayment terms. This loan was designed to be a very adaptable type of loan agreement, as it guarantees monetary security to prospective lenders with the VA guaranteeing to repay around one fourth of each guaranteed loan in the event the debtor defaults on repayment. With the current state of the economy, there have been plenty of home foreclosures mainly due to nonpayment of mortgages, resulting in homes being repossessed.
In an effort to help those veterans who are in financial trouble, the VA has introduced the above-mentioned loan. This package has proved to be very popular as it offers great VA loan rates and terms for qualified veterans. Personnel who have had active military service for over six months are eligible for this loan; you have to present all the necessary paperwork to the VA offices to begin the process of application. The main attractions of a VA home loan, unlike a normal homeowner's loan from a bank or financial institution is that there is no down payment requirement, there is no necessity for availing any mortgage insurance, and there are no prepayment penalties.
Alternate Loan Uses
Although there is no deposit needed when applying for a VA housing loan, the serviceman will have to bear the cost of a finance funding fee imposed on each loan and in some cases there is also an appraisal fee; this expense was mainly designed to pay for the VA loan guaranty program. Even though this loan scheme was designed to help military service persons purchase a home, it could be used in other ways like refinancing any past direct loan to bring down interest rates or a home improvement program, etc. The whole idea was to give the veterans a helping hand to own a home of their own and give them support when dealing with lenders or any financial institutions when making any real estate deals
Professional Financial Help for Veterans Home Purchase Progr