VA Mortgage home loans and Benefits

Veteran Administration (VA) is basically built for the military people or the veterans of the military and these people only eligible for VA mortgage loans. The whole concept of
Veteran Administration is to protect the lender against any loss due to, if any of the eligible persons is not able to pay back the VA mortgage loan amount. It guarantees the lender against the loans issued to the military or veterans.

Benefits

• VA loans allow the veterans complete fund to purchase or refinance the home. This facility is not there in either FHA or conventional loans no matter how good they have their credit report.
• VA loans never ask to pay for monthly Mortgage insurance premium (MIP). So avoiding mortgage insurance premium is a good benefit in VA loan.
• The income and the credit scores plays less role in the VA financing compare to conventional financing and allows higher debt-to-income ratios. Higher ratios permit more veterans to qualify for the type and cost home they actually want.
• VA loans do not require any cash balance in the banks for the qualifying of home loans.
• VA closing costs are very minimum comparing with all types of loans and some of the companies charge some unusual fees which a borrower does not know about.
• VA loans never demand for any amount of down payment for the loan approval.
• The rate of interest they charge is very minimum comparing to the market rates.

The veterans require certain criteria for the qualifying VA loan. The basic criteria mentioned by the Veterans Affairs office and veterans are required to bring the certificate of eligibility with the help of lender.