Aside from a bank, there are other ways to get a home mortgage to buy your first house. Government agencies such as Housing and Urban Development offer homes for less than market value and the Veteran?s Administration provides loans for buying houses. Here are the qualifications to get a loan from the VA.
Who Qualifies for VA Loans?
To qualify to get a home loan through the VA, you must have served in the military. A Certificate of Eligibility will be required by lenders providing VA loans. To qualify for a certificate, you must have:
- Served in the military for 90 consecutive days during wartime
- Served 181 days during peacetime
- Had more than six years of service in either the Coast Guard or Reserves
- Be the spouse of a service member who died in the line of duty or because of a service-related disability
Most lenders who provide VA loans will offer VA loans rates that are set by their institutions. The VA doesn?t have anything to do with the interest rates at which the loans are made. The rates are solely the responsibility of the lending institution.
Fixed Interest Loans
VA loans rates are set as fixed interest rates and the rate doesn?t change throughout the life of the loan unless you apply for a loan modification, refinance the mortgage, or make other changes. Although the VA doesn?t have any control over the rates, it does not object to changes in the rates as long as the lender follows the terms of the loan agreement.
Private institutions such as Midwest Mortgage Associates Corporation process VA loans for veterans, active duty personnel, and military spouses. They offer affordable VA loans rates so veterans and their families can afford to buy nice homes, settle in communities, and raise families. You can also connect them on Facebook.