Greg Shuey works for a Utah mortgage company called Utah Financial. Together with Chase Gunderson, we specialize in Veteran Loans and many other types. We are here to educate and help you along the way when researching and obtaining one of our Utah Veteran loans.
US banks and several private financial institutions, such as mortgage companies, have funds allotted for US veterans for home loan purposes. The Veterans Administration (VA) guarantees these funds for the benefit of those who serve the country in the Armed Forces. Lenders give out such loans knowing that the VA is there to provide guarantee in case borrowers default on payments.
Get in Touch with the VA to Know Your Loan Legibility
There are requirements that an availer should consider to be entitled to home loans. Veterans who have served 90 days or more during the war and who are honorably discharged are entitled to avail of such loans. For peacetime veterans, their service should start at 181 days before September 7, 1980 or have a minimum of two years after this date in order to qualify for a loan. They should also be honorably discharged.
Those who served in the Reserves and National Guard with a minimum of six years and are still in the service or honorably discharged are also eligible for the loan. Those whose spouses are casualties in time of service and did not marry are also entitled to the loan. Inquire from the VA office if you have further questions.
Obtaining Certificate of Eligibility
This should be done first before you can apply for a loan. Visit the Veterans Administration website and learn of the necessary documents you need to accomplish, such as the VA Form 26-1880. Once you have filled out this form, send this to the VA together with your DD Form 214 that documents your service past the year 1979. However, this is not a guarantee that your loan will be easily approved since you will have to be evaluated about your financial capability to repay the loan. Veterans can ask their lender and obtain from them an Automatic Certificate of Eligibility (ACE) coming from the VA that provided enough information.
Loan Restrictions on VA
Use your VA loan for financing your home within the US territories only. VA home loans can also be used in improving and refinancing your home.
Funding Fee
A corresponding fee of 2% - 2.75% of reservists will be charged to the total loan amount to close your VA, which can be comprised in the loan amount. If you choose to have a down payment of 5%, this will free up your fees more.
Benefits of VA Loans
A 100% financing scheme is available for veterans without any down payment. Since VA loans are guaranteed, a veteran does not have to pay for Private Mortgage Insurance (PMI), giving a savings of more than $50 a month. Prepaying this loan will save you from penalties; interest rates are also competitive.
Disadvantages
VA loans usually take longer to process compared to other type of loans. Because of automation, processing takes relatively shorter than it used to. Sellers also need to pay closing costs when dealing with home prices for sale.
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