Your life is challenging enough once you have served in our military. Obtaining a personal loan should not be another hassle you have to add to your list. Fortunately, there is a variety of programs and federally guaranteed lenders available to offer loans for veterans. To get a quick overview of what is available to veterans and their families, keep on reading!
What Is a VA Loan?
When veterans and their families come to us, they often ask, “What is a VA Loan?” To assist returning service members in buying homes, the United States government created a military loan guaranty program in 1944. This was called the VA Loan. It is a mortgage loan issued by approved lenders and guaranteed by the federal government. Through its distinct advantages over traditional mortgages, the VA Loan program has helped place over twenty million veterans and their families into a budget-friendly home financing situation.
Nowadays, service members rely upon the VA Home Loan program more than ever. In the wake of the housing market collapse, lenders nationwide have tightened their lending requirement in the last few years. With many military homebuyers having a tough time because of down payment requirements and strict credit standards, the VA Loan is a breath of fresh air.
The most definitive characteristic of the VA Loan is that veterans with qualifying income and credit can buy a home with no money down. In addition, VA Loans also provide no private mortgage insurance (PMI), extremely competitive mortgage rates, and feature flexible requirements.
A veteran must have served 90 days during war time, six years in the National Guard or Reserves, or 181 days during peacetime in order to qualify for a VA Loan. If you are the spouse of a service member who was killed in the line of duty you may also qualify.
Refinance VA Loans
The VA Loan Guaranty program also offers a specific loan program called the VA Streamline Refinance. These refinance VA loans are officially known by the government as Interest Rate Reduction Refinance Loans (IRRRL), but it is also called a VA-to-VA Loan. For the most part, almost all honorably discharged service members and active duty service members are eligible for these loans.
The IRRRL allows you to refinance your current mortgage at a rate that is lower than what you are currently paying. The ease of use of this loan has made it quite popular. It is relatively simple to experience considerable saving by lowering your interest rate once you have already been approved for your initial VA purchase loan.
Within a month’s time, a lender or loan officer with experience in VA loans should be able to complete the loan. The cost of the loan can incorporate the closing costs of the VA loan giving veterans the opportunity to refinance without out-of-pocket expenses. Or, in exchange for a higher interest rate on your loan, it is sometimes possible for the lender to take the brunt of the cost.
There is also the VA Cash-Out refinance loan which allows borrowers to refinance their VA or conventional loan into a lower rate while also taking money from the home’s value. Though it is often confused for a home equity loan, it really is not since it functionally replaces your existing mortgage. In some cases, a qualified veteran can refinance up to 100 percent of their home’s value.
The VA Cash-Out refinance loan is available in any form, such as FHA, conventional, or USDA. Veterans typically pick the VA Cash-Out over other alternatives because it usually comes with a lower interest rate and the payoff period of the loan is extended.
Loans for Veterans with Bad Credit
No matter your military background, if you have bad credit, it can be next to impossible to get a loan. Thankfully, we are here for you. We offer loans for veterans with bad credit in order to help you acquire the funds you need as well as assist in reestablishing your financial standing. With loans varying from small to quite large, you can work toward rehabilitating your credit score while getting the money you require for bills, emergencies, expenses, travel, school, or any other reasonable purpose.
VA Funding Fee Exemption
Some people are exempt from paying the funding fee associated with VA home loans. You can get a VA funding fee exemption for your VA home loan if you are a veteran getting disability compensation for service-related health problems or you are entitled to get compensation if you are not drawing retirement pay.
Another group that is exempt is the surviving spouses of those who died in the service or from disabilities related to their service. This is regardless of whether or not the spouse has any of their own entitlements. Remember that some issues may be dealt with on a case by case basis, and the VA has the last word on who is exempt. Get a determination from the VA by having your local VA rep review your (or your spouse’s) service records if you have any doubts.
VA Disability Calculator
The disability calculator VA uses to determine disabled veteran’s compensation rates can be quite confusing. At its most basic, the amount of basic benefits paid ranges based on how disabled you are. Based on the evidence submitted as part of your claim and your military records, the VA will determine the severity of your disability. Each disability is rated from 0 percent to 100 percent. When there are multiple disabilities present, then the percentages are weighted and combined. The calculations are confusing, but we can help you with this.
If you are looking for veteran loans, you have come to the right place. We are knowledgeable about what programs are available to you and your family and can get you started off on the right foot. We enjoy serving those who have served our country. To learn more, please contact our friendly professionals today for a free consultation on loans for veterans.