Friday, September 23, 2011

Guest Post-Military Veterans Can Take Advantage of Their Benefits with a Veteran Home Loan

I was recently contacted by Jessica for a guest post on VA Loans. As most of you know, my husband I recently purchased a home. We used a Veteran home Loan, also known as a VA Loan. If it weren't for the VA Loan, we wouldn't have considered buying any time soon. If you or your spouse has served, and you are considering buying a home, Consider the VA Loan! 

Military Veterans Can Take Advantage of Their Benefits with a Veteran Home Loan

Right now is a fantastic time to buy a new home.  Prices are low, lending rates are even lower, and many people have had their homes up for sale for a long time with no interest, and they are willing to make a deal.  Needless to say, it’s a buyer’s market.  In addition to prime market conditions, there is even better news for veterans of the US Armed Forces; if you are an honorably discharged member of any branch of the Armed Forces, you may qualify for a US Veteran Home Loan.  The benefits of these home loans are quite expansive and could help you and your family pay for the home of your dreams.

Because of their service and sacrifice for our country, honorably discharged members of the Armed Forces are entitled to certain benefits as part of their compensation package.  One of the greatest benefits that they can receive is the home loan benefit.  The government has provided guaranteed home loans for members of the armed forces that carry certain incentives that you can’t get if you aren’t a member of the military.

A VA Loan is a special loan that is guaranteed and insured by the government and can be issued by a specially licensed lender.  There is no required down payment for a VA loan.  Although there is a funding fee of up to 3.15% of the total loan amount borrowed, this amount can be financed and paid off over the life of the loan.  In addition, up to 103.15% financing is available, meaning that qualified buyers are able to borrow more than the amount needed to purchase the house.  This extra money can be used to make home improvements or changes to the home.  An additional $6,000 can also be borrowed as long as it is used for energy efficiency improvements.  Veterans who already own a home are able to get 20% funding for a second mortgage.

The VA allows veterans to qualify for and receive loans that are larger than they would normally be able to receive if they financed with a traditional lender.  The maximum loan amount available depends on the location of the home being purchased, and the amount varies by county.  The maximum amount available with no down payment is $417,000, although in certain “high cost” areas funding up to $1,094,625 is available.  Finally, if there are any closing costs associated with the home sale, the VA requires that the seller pay these, providing that the total cost does not exceed 6% of the total home purchase price.  This will save the homebuyer even more money.  VA home loans also generally carry significantly lower interest rates than traditional mortgages, sometimes up to 1.5% lower, saving the buyer thousands of dollars over the life of their loan.

The benefits of a VA home loan are expansive.  It is in the best interest of all qualified veterans to look into buying a house with their VA benefits.  The combination of prime market conditions, low rates and huge money saving benefits all mean that there is money to be saved on the purchase of a home.  If you are a US Armed Forces veteran, look into a VA home loan.

Guest post by Jessica Gingham at

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