Buying a home is an arduous process that many people will go through at least once in their lives. The real estate industry in Utah is booming, and this great state is an excellent place for veterans to retire and live a quiet life post-deployment. The government tries to make things much easier for combat veterans when returning to the good old United States of America, which comes with many benefits.
One benefit that many veterans can take from their active duty service is to apply for a mortgage loan using VA home loans. The Veterans Affairs Office wishes to assist those who served with the essential task of having a roof over their heads. This process is typically simple and straightforward with a mortgage broker in Salt Lake City, Utah. Here’s what you need to know about VA home loans if you are an American military veteran looking for a home:
What Comes With a VA Loan?
The VA loan is a guaranteed loan by the U.S. Department of Veterans Affairs, a government agency. Lenders who the VA Office backs are more inclined to lend money to military members for real estate purchases because fewer risks are involved. Since the government backs lenders to give veterans the best mortgage rate possible, this makes them more at ease than conventional mortgages.
Some VA loans in certain areas can be given without down payments. They can even be more accepting towards lower credit ratings. There will still be standards set by the lenders and an approval process like other loans, but these can often end up with better benefits. In fact, if the process is done right, this can give veterans a home that ends up costing less money compared to coursing everything through a bank.
How Do They Work?
There is a set of paperwork given by the VA office that you’ll need to fill out to ensure that you’re eligible for the program. This process is standardized to ensure that people applying have actually served in the military, as stolen valor is quite common in American society. You’ll then receive an entitlement amount, which is a value in dollars guaranteed on your loan. Some lenders might be willing to loan up to four times listed on your entitlement amount, which can be a big help. A mortgage broker in Salt Lake City can usually help you get the best home with the value on your entitlement.
While VA loans can be obtained without putting any money down, they also don’t require private mortgage insurance policies. However, you’ll need to pay a VA fee when closing on a home, which is a percentage of the total loan value. This small fee is something that will assist the VA office in running their operations for future applicants.
How Do I Know If I Have the Qualifications?
VA loans have qualifications, which are typically visible on your military file. Most people who are applicable are active-duty soldiers and veterans who have served. In some cases, military members’ spouses can also qualify for VA loans, but these require particular instances. The VA website lists all requirements, but the basic ones include current military duty, an honorably discharged veteran, and serving at least 90 active days during wartimes. During peaceful deployments, the dates are up to 181 days consecutively to qualify for a VA loan.
Once you qualify for these, you’ll need a Certificate of Eligibility to prove that you have served. Otherwise, you’ll be unable to secure this loan. You can typically request this from the right offices and get all the necessary documentation to support your file.
VA loans are beneficial for those who are serving and have served in the past. These benefits are the gift of the American people to those who have answered the call of duty. If you are a veteran or active-duty serviceman, don’t hesitate to apply for a VA loan as one of your benefits for serving in the military.
Frontline Financial are mortgage brokers in Salt Lake City, Utah, that help veterans buy their homes. Only very few answer the phone when duty calls, and we are ultimately grateful for the men and women who lay down their lives for our wonderful country. Contact us to learn more about the best mortgage rates available for veterans today!