A VA mortgage carries many benefits for those who have served in the Armed Services, both men and women. This type of loan extends to those who also serve as National Guards, Active Duty in the Military, and in the Reserves. The spouses of those participating members of the U.S. Force are also qualified to apply for a Veterans Administration Loan.
The GI Bill
A part of the loan is guaranteed by the United States Department of Veterans Affairs. Most service members are qualified and eligible to approach various lenders in pursuit of a home loan. Close family members are also included. The VA Loan was initiated in 1944 and at the time, it was called the “GI Bill.” It was used to assist soldiers as they returned from war and to give them an easier way to enter civilian life again. It proved to be quite helpful to the soldiers, so they did not have to face the uncertainty of where they would live or work. The Bill also included other benefits such as:
- Unemployment benefits
- Paid education
- Paid training
- Programs for farming and other businesses
To this day, the VA program has many helpful and attractive features, which include acquiring a home loan.
What is Involved?
If you are interested in VA home loans Denver-based, you should know what to expect. First of all, you don’t need to put down any money on the home. This is a huge advantage because many soldiers returning home from war or other assignments do not usually have the money to put down on a home. One thing to note, though, the purchase price of the home cannot be more than the appraised value. In most cases, the applicant can get full financing, but some lenders have extra requirements for qualification.
With a VA home loan, you do not have to pay any mortgage insurance since the loan is guaranteed. There is a funding fee, though, but most lenders, factor it into the full loan amount. The loan has no limits or restrictions to the amount. The rates are competitive, so it is best to speak to different mortgage brokers, so you can secure the best interest rates, after comparing them.
Contact a Mortgage Broker
The good thing about VA home loans is that as long as you serve in the military, you are entitled to this benefit for life. Of course, there are some eligibility guidelines, so it is best to speak to your mortgage broker and ask questions if you are uncertain.