If you're a veteran of the armed forces, you may have the benefit of applying for a VA loan, or Veterans Affairs loan. Current U.S. Military personnel may also be eligible for VA loans if they're looking to buy a home and get a mortgage, too. To find out if you're eligible, you should visit www.homeloans.va.gov to get the most up-to-date information on eligibility and benefits for veterans and active duty personnel.
VA loans offer many benefits and protections that civilian mortgages and home loans do not. Although your mortgage or home will be through a traditional lender or mortgage company, your loan will have several stipulations attached to it that will protect you and hopefully save you money. For example, your mortgage rate may be lower, whether it's a fixed rate mortgage or an adjustable mortgage rate. VA loans are designed to encourage veterans to purchase their own homes and begin to build a secure and stable civilian life after leaving the service. In many cases, unless the lender or mortgage company requires it, you won't have to pay a downpayment when using a VA loan. This can be a great financial advantage for veterans. Your closing costs may also be limited so that the cost to you is minimal.
When pursuing a VA loan, you must first make sure you are eligible and approved by the U.S. Veterans Affairs office. You can still shop around for mortgage quotes to find the best mortgage rate and the best lender for your needs for purchasing real estate or refinancing. Your lender will know how to deal with the special circumstances of a VA loan and can work with you to make sure that you will get all the benefits that the mortgage company can offer you. Although many of the usual mortgage and home loan processes, such as mortgage insurance, fees, and bad credit mortgages can affect you, VA loans do try to secure a low fixed rate mortgage for its eligible applicants. This will keep you from having to deal with a fluctuating market, which can affect adjustable rate mortgages negatively.
The benefits of VA loans for veterans and their families are numerous, but you must be eligible to pursue such mortgages. If you think you might be, inquire with the U.S. Veterans Affairs office. If you're eligible, it is a smart move to have the protections and benefits of a VA loan on your side in the lending and mortgage market.