Tuesday, December 24, 2013

How To Access Veteran Home Loan

By Harriett Crosby


Veteran home loan aims at providing decent housing to service men who are currently serving or already released from the force. Applicants pay their dues through the benefits they get out of their service. Eligibility criteria are skewed to favor service men considering that they serve the nation under special circumstances. The scheme ensures that they enjoy decent and dream houses through a special provision.

A person who is eligible for funding must have served in the force for 90 consecutive days during a war. Those who have not gone to war should have been engaged for 181 concurrent days. Service men in the National Guard should have served for over six years in order to qualify. A six year period is also required for those enlisted as reservists. Any individual who has served for the stipulated period of time is said to have attained the threshold.

There is a clause that allows spouses and partners of service men and women who have died at war to still enjoy decent homes. Those disabled at war are provided with housing to protect their dependants. Applicants are required to obtain a certificate of eligibility from the Department of Veteran Affairs. It contains the details that qualify a person for this special mortgage. It is not a mandatory requirement before the process commences.

Veteran Administration website avails the certificate of eligibility for applicants to fill and download. Private lenders have additional conditions for applicants to fulfill. They state that the credit rating, debt ratio and income must meet certain requirements. The scores are obtained by credit agencies. They also demand that for any applicant to qualify, he must not have been dismissed from the force due to misconduct.

Veterans stand to reap huge rewards from the VA mortgage. No down payment is demanded before the funds are released. This is in recognition of the fact that service men are always on the move and they might find it difficult to save regularly. The backing of the government also means that no private mortgage insurance is required. The rates and terms provided are competitive.

The amount payable each month is reduced and eliminated in some cases since basic allowance for housing is considered as income. Different individuals enjoy a different figure because of their job ranking, location and number of dependants. There are no fines if a veteran decides to offset the mortgage midway through the term. This is a different scenario from what is witnessed in private lending.

The financing options available depend on the kind of home you wish to purchase. The Department of Agriculture finances individuals interested in a rural home and farming land. Applicants intending to fix energy efficient installations in their homes are financed by the Federation of Housing. It also caters for most of the first time buyers. Veterans can also enjoy market rates that are flexible and skewed to their needs.

Persons who wish to access veteran home loan must meet the basic conditions. The support of government and military leaders gives the scheme legitimacy. It is the place where veterans find real value and flexible conditions to suit their needs.




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