Veterans United Home Loans is a government-guaranteed home equity program that is intended to help veterans fulfill the dreams of returning to civilian life. Home loans have become a popular alternative for homeowners who want to borrow money for major purchases such as a new home. However, with housing prices on the decline, many individuals find that traditional mortgage financing options do not offer the type of flexibility or rates they need. The Federal Housing Administration (FHA) offers the most flexible and convenient loan program for qualified borrowers. Homeowners can obtain FHA mortgage refinancing to fix their existing loan and improve their financial situation while returning home ownership to their families.
To get a VA home loan, certain requirements must be met. According to Veterans United Home Loans, to qualify for a VA mortgage, you must meet one or more of these criteria: You served 180 days in the line of duty. You were discharged honorably from the military. You are a veteran or you’re a member of the Selected Reserve.
Veterans United Home Loans does not require borrowers to meet any of these specific eligibility requirements. In order to apply, borrowers must be at least 62 years old, married, and not currently experiencing financial difficulty. If you meet any of these pre-requisites, you will immediately be considered a veteran and eligible for home buying assistance. Once you have determined that you meet all of these eligibility requirements, you will be given an application to fill out and return to the lender. If you are a veteran or a member of the Selected Reserve, you will not be considered under the regular home buying program.
The main advantage of using Veterans United home loans is that there are no credit qualifications. Even if you are a veteran or a member of the Selected Reserve, if you have not served in the military, you can qualify for this type of loan. There are two types of Veterans United home loans; the first, called 100% loans, gives veterans full access to financing. As you would expect, this means that veterans will not need to obtain any kind of veteran credit rating in order to qualify for a loan. Because of this, there is no need to check your credit score.
The second veteran’s home loans are the hybrid variety. They combine aspects of both traditional loans that do not require a credit rating. The hybrid loans require borrowers to have decent to good credit. This can either be achieved by paying down debts while still in the service or by showing lenders that you have been diligent in meeting your payments.
There are a few disadvantages to using veterans home loans for financing. First, it should be noted that these loans are not really tailored to the needs of returning service members. Many times, they are more appropriate for members who have special skills such as those who are involved in certain activities such as film production or other entertainment-related professions. In addition, if your credit score is low, you may want to look at getting one of the traditional loans from the bank before turning to the home equity option. Banks often offer lower interest rates on mortgages for service members because they understand that most likely these people will be going back to school and most likely not be able to tap into their credit rating again. The interest rate for the loan will most likely be slightly higher than it would be for a non-vets homeowner.
Another disadvantage of using veteran home loans is that many times lenders will only allow these loans if the homeowner is also a veteran. There are loans that specifically exclude veterans, but these loans are few and far between. If you have a good credit score, the chances of getting a good interest rate are great.
The other consideration when choosing a veteran home loan is to make sure the loan is GSA approved. This means that it will be authorized by the General Services Administration or the government. GSA approval is required for federal loans as well as state and local housing authority loans. If you have had a career as a service member or you are a veteran that is in the process of transitioning to another occupation you can apply for federal assistance. Your chances of success are much better than those of those without a history of military service. This is why it is important to check with the nearest GSA office to see what the maximum amount of money you can apply for in order to secure a loan.