The history of VA loans offered at NHL Lending in Hialeah may surprise you!
In 1944, the United States government created a loan guaranty to help all of the returning services members purchase new homes since they were returning during a declining housing market and economy and this loan guaranty became known as the VA home loans. VA home loans are issued by approved lenders and are guaranteed and insured by the federal government.
Since 1944, when the program was created, the VA has helped place and secure the future of more than 20 million veterans in homes while helping them maintain affordable payments. These types of home loans have special financing and have distinct advantages over conventional loans or any other type of home loan available. Even today, this loan program is still going strong and it is more important than ever, especially to our veterans and service members. This is particularly the case since in the past few years, lenders have made the requirements for conventional loans much stricter due to the housing market crash and the declining economy.
Due to this fact and these requirements, VA loans have become a lifeline for military borrowers and their futures. The main reason for this is that VA home loans do not come with the strict credit standards and the down payment requirements that the other types of home loans do. NHL Lending in Hialeah can help you find out if a VA home loan is right for you.
What are the advantages of securing low VA home loan rates?
VA loans are by far the most flexible loans that are available to individuals today. These loans were created to provide housing opportunities to veterans that may not be able to obtain financing for conventional mortgages or other types of loans. VA home loans come with many advantages to those who qualify for them. The first advantage of obtaining a VA home loan is that there is no down payment required to purchase a home with a VA loan. This means that you will be able to finance 100 percent of your new home’s cost with no money down in advance. The second advantage is that you will not have to worry about private mortgage insurance because it is not required with a VA loan. This is due to the fact that VA home loans are insured by the federal government which gives lenders lower risks upon approval. Also, by obtaining a VA loan it will help you build more equity in your home. This will save you a lot of money over the entire length of your mortgage. Due to the fact that you will be considered a lower risk to your lender, you will be offered a very competitive, low interest rate. Other benefits of VA home loans include:
• The ability to use your basic housing allowance as your monthly income
• Not being penalized if your pre-pay your loan
If you would like to hear more advantages that are associated with VA home loans, contact us today!
Why are VA home loans in Hialeah necessary?
The main purpose of the VA home loan program is to help veterans purchase a home with fantastic loan terms and at a rate of interest which is competitive with the rates that are charged on other type of mortgage loans. You should know that for VA housing loan purposes, the term “veteran” includes certain members of the Selected Reserve, active duty service personnel and certain categories of spouses. If you are unsure if you are eligible to receive a VA home loan, there are many ways that you can find out. Either you or your lender can contact the VA and request a certificate of eligibility. Surviving spouses may also be entitled to receive a VA home loan and can find out by contacting the VA as well. There are usually six steps that will need to be followed in arranging a veteran’s guaranteed loan. First, you will want to find the property that is suitable for your needs. Second, you will want to go to a lender and apply for your VA home loan. Third, you will then need to present your discharge papers or separation papers that show your latest period of service. At this time you should also present your certificate of eligibility letter to your lender as well. Fourth, your chosen property will then be appraised by a VA approved appraiser. Fifth, an estimate of your chosen property’s reasonable value will then be determined. The last step in this process will occur after your application is approved. This last step includes receiving your loan. It is important to remember that receiving a home loan may take time. By contacting NHL Lending, they can help you finance the home of your dreams in no time at all!