The VA loan in simple terms is a mortgage that is guaranteed by the government. It is designed to benefit reservists, veterans and active duty military. One of the major benefits associated with a VA loan includes no closing costs or down payment is required.
The VA loan program was started in 1944 to help Americans that served in the war an opportunity to own their own homes. Most people assume that VA home loans are issued by the Department of Veteran Affairs, but this is not the case, the Department only administers the loans.
The VA acts to protect the interest of the lenders by intervening in the event that the borrower is no longer able to meet their financial obligation. The VA does this by guaranteeing the loan.
A Plantation VA loan can only be used to purchase a home for the borrowers primary residence or refinance a home that is the borrower’s primary residence.
Prominent VA Home Loan Features
- Down payment is not required
- Mortgage insurance is not required
- Much easier to qualify for than a conventional loan
- Exploring the VA Home Loan Option
If you would like to understand more about Plantation VA home loans, get in touch with Nationwide Home Loans. Our loan specialists are conversant with all the rules associated with VA home loans and will walk you through to ensure you have a thorough understanding of the program.
Once you choose to go with a VA home loan you will be required to follow the process as indicated below:
Prove VA Home Loan Eligibility
To be eligible for a VA loan, you have to be a member of the military on active duty, a member of the Selected Reserves or National Guard, or an active duty person. To determine eligibility, a borrower is expected to submit a VA Form 26-1880 accompanied with proof of service.
Identify home you want to buy
By contacting Nationwide Home Loans, a certified agent will help you look for an affordable home based on the criteria you give. Sellers will take you more seriously if you are a pre-qualified buyer. Your certified agent will represent your interests from start to finish including the scheduling and selection of a qualified VA home inspector.
Submit the loan application for approval
At this stage, you should already have been approved by the Government Loan Specialist. All that needs to be done at this point is close escrow, fund the loan, and get a final approval.
The certified agent will ensure that there is a financing clause in the buying agreement and escrow instructions that is dependent upon getting the VA loan.
In the unlikely event that your Plantation VA home loan does not go through with us, you will not be able to complete the purchase.
Ordering the VA Appraisal
Nationwide Home Loans will order an appraisal on your behalf from a state-licensed real estate appraiser. The appraiser is responsible for appraising the property and filling out the VA appraisal form with their conclusions. This lets the VA know if the property offers enough collateral. In the event that some repairs have to be made in order to meet any set government standards for habitability, the appraiser usually notifies the lender in writing.
You should understand that the VA appraisal should not be confused for a home inspection. The VA appraiser is only responsible for inspecting the home’s habitability. Homebuyer’s are required to get a home inspection from a professional home inspector.
Closing escrow and finalizing the purchase
A home insurance policy for your home is required before you proceed with closing. This insurance policy is designed to protect both the lender and the homeowner from any loss caused by property damage.
The escrow process involves receiving a title insurance policy that both the lender and you against disputes that arise from property boundaries as well as rightful ownership issues.
It is not possible to pay an excessive amount for your closing costs. This is because the VA looks out for the borrower’s best interest and ensures that the lender does not overcharge. The VA also limits the types of services that can be billed.
The VA pre-determines which services and costs are allowable and which ones aren’t.
Benefits of a Plantation VA Home Loan
When compared to conventional loans, a Plantation VA home loan has several distinct benefits. Some of the advantages of a VA home loan are listed below:
When applying for a VA home loan, you don’t need to be concerned about having to make a down payment. With the exception of the USDA, the VA home loan is the only other loan product that offers 100% financing.
Even though a VA home loan provides the highest LTV, you still do not need any insurance.
Other benefits include:
- Easy qualification
- Low closing costs
- Easy refinancing