VA refinancing: Hidden Gold Mine

2007-03-08 10:33:40

( Financial )



The VA loan guaranty plan was founded during World War II to aid veterans returning from the war. It's overall objective was to minimize the economic and sociological impact the war may have wrought on individuals serving in the Armed Forces. This meant loan benefits towards the purchase and refinancing of veterans' homes in gratitude for the sacrifices they made during the war.

VA loans and va refinancing are beneficial and financially rewarding for the millions who qualify. Unfortunately, many veterans are unaware of this and are unable to take advantage of their benefits. Almost every United States veteran qualifies for a va loan which is one of the many benefits afforded by the Veterans Affairs. VA loans can be used to finance the purchase of a home or lot, or fund the construction of a house. VA refinancing as well as major home improvements are also possible.

VA loan qualifications
If you are unsure whether you qualify, it is best to see a VA loan professional or mortgage broker. A qualified VA loan professional can also expound on va loan refinance, va refinancing, va refinance and va streamline refinance. Among the basic requirements for a VA loan applicant are:
• Active-duty WWII veterans without a dishonorable status
• Active-duty veterans of major conflicts with rendered service of at least 90 consecutive days
• Active personnel and peacetime veterans with rendered service of over 180 consecutive days
• Selective Reserve and National Guard members

Why a VA loan?
A VA loan may rightfully be preferred over a standard loan for many reasons. More importantly, even if you fail to qualify for other loans, you may obtain a VA loan if you possess the qualifications. Depending on the lender, a VA loan requires no down payment and has negotiable and often lower interest rates compared with conventional loans. Further, va loans have no mortgage insurance premiums, and permit an assumable mortgage. Va assistance is also available in instances of temporary financial difficulties, closing costs are lesser than other financing modes and mortgage prepayments have no penalty as in the case of other loans.

The va also does not put a limit on how much money you may borrow. This is left to the discretion of the lender, bank, mortgage or savings and loan companies. A borrower can often obtain a loan up to 4 times the amount of the basic claim without a down payment or additional requirement. Furthermore, veterans who have already taken out past va loans may still qualify for entitlement of any remaining previous balance which was unused. And since entitlements increase over time, individuals who availed of va loans in the past may qualify for a bigger loan amount than before.


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