One of the vital aspects of serving the nation through the military and the US Armed Forces is that the person qualifies for the VAHL or the Veteran Affairs Home loans. In the current times when the property prices have skyrocketed and are beyond the reach of most of the well to do individuals, the VA loans and the benefits associated with them offer the much needed support to the people with low to middle income. Under the VA loans, one has the privilege of getting a loan with no down payment or a down payment as low as 3.5%. However, there are several myths around the VA loans which make them a kind of suspected loan and the borrowers often keep a distance from them for the same. Here are some of the pertinent questions which can guide you into taking these loans and making a decision with regards to them.
Do you really need to be serving in order to qualify for the VA loans?
Anyone who is a veteran and has served for a minimum of six months between 1964 till date, qualifies for a VA loan. This both serving as well as the retired army personnel qualify for the VA loans. In case of the approval for the loans, the current and the past service records are taken into consideration and hence the certificate of eligibility is demanded for the purpose.
All who are Veterans qualify for the VA loans
Anyone who has served the nation and is a veteran does not qualify the VAHL. Even if one manages to get the certificate of eligibility there are a lot of other things which are considered before an approval is made. One of the important aspects looked at is the debt to income ratio which has to be below 41% for an individual to qualify these loans.
The fees associated with the VA loans involve huge amounts
Under the law there is a onetime fee associated with the VA loans. If you are to make no down payment the fee is 2.15% if you are taking the loans for the first time. However, if you are using the loans for the second time, you will have to part away with 3.3% of the total value of the property. In case you decide to make a down payment on your own you are likely to witness a drop in the loan fees. A lot of people consider the fees to be really expensive. However one can get the real understanding of the fees once they compare them with the conventional loans. In case of the conventional loans if you make a down payment which is way below 20% you will be required to take mortgage insurance. The premium payment of the insurance costs anywhere between 0.5% to 1% of the total loan amount but on an annual basis and hence is in no ways less than the fees applicable on the VA loans.
VA Home Loans Take Longer to Close
There are a lot of people who are under the impression that the VA loans take a much longer time to get closed. However, this is not true. In fact, in most of the cases the VA loans are offered by the private lenders and hence the decision for the approval rests with them. These loans generally take around a month to get approved.
You can safely contact the real estate agents for the VA Home loans
If you are looking for the VA loans, contacting a real estate agent who is knowledgeable makes a lot of sense. There is rarely a certification available for the real estate agents and hence whom to rely upon is really difficult.
Once you are aware of the myths associated with the VA personal loans for people with bad credit can always be in a better position to take the right decisions.