VA Guaranteed Home Loan in Brief :
Veteran Administration mortgage loan programs are housing solutions offered to eligible war veterans who would like to purchase or refinance a home. These loans were introduced in 1944 and are guaranteed by the Veterans Administration Department, thereby protecting lenders against any defaulters. Under this program, a borrower is eligible to get a loan equivalent to $417,000 from any VA approved lender.
Benefits of VA Guaranteed Home Loan:
The most significant benefit of a VA Guaranteed Home Loan is that the borrower is not required to make any down payment. These loans are offered at a very convenient interest rates and the money can be utilized for home construction, renovation, repair, improvement or even as a refinance. Apart from that, the borrower is even eligible to buy a manufactured home or any residential condominium. The loan amount can also be utilized to purchase and install energy efficient devices for the home such as solar heaters, efficient cooling devices, weatherization improvements or any other improvements that can utilize energy more efficiently.
Other benefits include extended forbearance options and no prepayment penalties. Also, the homes purchased through VA Guaranteed Home Loans are more secure as they are constructed as per the VA guidelines and carry a one year warranty from the builder. However, there are certain up-front costs including funding fees and closing costs which the borrower has to bear.
Borrowers eligible for a VA Guaranteed Home Loan include active military personnel, war veterans who served during World War II or during peace time operations, veterans who served during Korean or Vietnamese conflict, reservists, National Guards and spouses whose partner might have passed away while serving the country.
