Christian Veterans Home Loan
Christian veterans home loans are available for anyone who has actively served in the United States military for at least ninety days, and was separated from the service with an honorable discharge. The Veterans Administration was designed specifically to help veterans to buy a home under the best terms possible. They are granted without a down payment so that 100% of the money is financed. Mortgagors are not taking a risk because the government guarantees the financing. Proof of service is required, of course, so a veteran must bring his separation papers when applying. Credit checks are not required for a veterans home loan, although earnings records are needed to see how much they can afford to pay back.
This financing is offered at the lowest fixed interest rate possible, and the terms can be set from 10 to 30 years. If a veteran gets a loan and pays it off, he is again eligible if he didn't use up the maximum funds he was eligible for in the first place. That total for a veterans home loan has risen over the years to keep up with the housing market, so the veteran who was eligible for $10,000 in the 1950s would be eligible for $100,000+ today. Some lenders would balk at allowing some of the loans that the VA allows, but with the government guarantee they don't object. Once the application documents are completed, the appraisal request is sent to a Regional Loan Center having jurisdiction over the geographical area where the veteran lives. The VA Appraisal System is designed to speed up the process of getting the financing processed as quickly as possible. While the major qualification points come from the federal application forms, many states have special requirements in place which the veteran must meet before the veterans home loan is granted.
"For I reckon that the sufferings of this present time are not worthy to be compared with the glory which shall be revealed in us." (Romans 8:18) The establishment of the veterans home loans after World War II was a tremendous help to those soldiers and sailors who came home. It was a fitting way to thank the men who survived the horrors of war. Every serviceman since then has been afforded veterans home loans after serving their time, even if it was in peacetime. The return of the WWII servicemen also marked the beginning of the housing subdivisions where they bought their first homes with these veterans home loans.
VA home loans are a type of mortgage financing for military veterans that offers them better options and easier financing. The Veterans Administration started the program as a way for more military veterans, especially those disabled, to own their own home. This organization is only an avenue to qualify for financing and does not personally approve home loans. Through this program not only do veterans qualify easier for homes but lenders receive reassurance from the Veteran's Administration that they won't lose money by lending to veterans.
In order to get this type of financing, a veteran must obtain a Certificate of Eligibility. VA home loans require that the veteran have served at least 90 days during conflict and 181 days during peacetime without being dishonorably discharged. Different guidelines are set for those who were injured on duty. Visit the local Veteran's Administration office to request a Certificate of Eligibility and if eligible a copy will be sent to the lender.
This program is beneficial in that veterans are able to own homes with no prepayment penalties and no down payment. Veterans also don't need Private Mortgage Insurance (PMI) and closing costs can be completely covered by the seller. The interest rates for VA home loans are lower than typical mortgage financing. Once the veteran obtains their Certificate of Eligibility, approval can be faster than for other mortgage financing. Being able to weigh the options of all financing choices takes patience and diligence. God wants everyone to excel in all financial endeavors. "Trust in the LORD with all thine heart; and lean not unto thine own understanding. In all thy ways acknowledge him, and he shall direct thy paths." (Proverbs 3:5-6)
Like most financing, a VA home loan has its disadvantages. Lenders must be VA approved to give out this special type of financing. Thus, veterans will have a limited number of lenders to work with compared to people seeking conventional ways to finance. Some lenders hesitate to offer this type of financing because they can take longer to process. Also, although the closing costs are usually paid by the seller with a VA home loan, this makes the selling price far less negotiable.
At the current percentage, the Veterans Administration will cover up to $36,000 for a $144,000 VA home loan and $60,000 for a loan over $144,000. Knowing this information, it is well worth the time to research individual eligibility. Veterans can get more information about VA home loans on the Veterans Administration website or at your local VA office. Speaking to other veterans about their experiences. They might be able to share more about the actual experience and help you avoid any problems through the VA home loan process.
Online VA Christian Home LoanAn online VA home loan can be applied for through an Internet website that allows veterans and their spouses to qualify to purchase a residence with zero down. These contracts are guaranteed by the Veterans Administration and are available to all veterans through participating lenders or can be made directly through the Department of Veteran Affairs for those who don't qualify under regular lending standards. There are limited funds made available for direct loans, and once a veteran qualifies through a traditional lending institution, he must reapply for the online VA home loan in order to receive the lender's funds.
Lenders love to issue contracts to eligible veterans because online VA home loans guarantee that the veteran borrower will repay the lender. If the borrower defaults, then the VA will pay the loan on the borrower's behalf. However, in a case like this, the defaulter will become ineligible for another of these contracts until their original money is paid back to the VA. The contract has a borrowing maximum that is determined by the geographical location and the area housing market. A unique aspect to online VA home loans is that they can be used over and over again, for as many properties as desired up to the limit.
For example, if a borrower sells his property which is financed through an online VA home loan, and pays off the remaining balance, he can buy a different property up to his limit. If a borrower wishes to purchase two separate properties with their combined purchase prices totaling not more that the limit, he is free to do so. This enables a veteran to have flexibility in purchase and the ability to utilize the program for the rest of his life. Online VA home loans also allow the borrower to receive approval with no money down. Traditional loans require a 10%-20% down payment.
The borrower also has the option to have the closing costs, which are the buyer's responsibility, to be wrapped into the mortgage. This allows for no out of pocket expenses during the entire process. An online VA home loan can be approved 100% through the telecommunications method. Accounts and information can be verified automatically, and a signature can be faxed. As believers, we have a greater responsibility to handle our money wisely, including paying back what we borrow. Psalm 37:21 cautions us, "The wicked borroweth, and payeth not again: but the righteous sheweth mercy, and giveth." Good stewardship means not signing up for payments beyond our ability to pay.
VA home loan rates can be considerably lower than regular mortgage rates, for people who qualify for this type of contract. A VA home loan rate is designed to help people as they reestablished their life after being away at war or serving in the military. This not only helps them financially, but also psychologically. The VA (Veterans Administration) designed these contracts to make getting a house easier and to reward or thank service members for their heroic duty. A VA home loan rate will vary just like any other home loan rate. It all depends on income and credit. The difference is that the VA rates will be better and the applicant will qualify for more house than with traditional loans. Researching many lenders before agreeing to a mortgage is still a good idea. Most of the time, the qualified borrower will find that the rates are lower because of the VA program set up.
When researching which contract to apply for, the borrower should consider many factors. The interest rate is not the only thing to look at. The VA also offers breaks in down payment requirements, points purchase, and closing costs. Just like with any other type of contract, the shopper should make sure that the VA home loan rate is not the only thing he focuses on. It is only as good as the rest of the package. The wise shopper will keep shopping around until he finds one that will work for him.
A good place to start researching for the right type of loan is on Internet. A surfer will find websites where Christian lenders will fight to get prospective client's business. By using the Internet, the borrower won't have to drive anywhere or talk to anyone. VA home loan rates vary from lender to lender and can usually be negotiated. The wise borrower will let lenders fight for his business, and the result will be a lower interest percentage. Other places to consider looking for the best VA home loan rates are through referrals from friends or in the newspaper. Sometimes lenders will advertise specials that just might be what the buyer is looking for. The psalmist advises us, "Receive my instruction and not silver; and knowledge rather than choice gold. For wisdom is better than rubies; and all the things that may be desired are not to be compared to it" (Psalm 8:10-11). Checking out all the options before making a decision is wise. Take advantage of these offers if the time is right.