VA Loan: A Great First Home Mortgage
I received an interesting article in my email this morning about the latest foreclosure settlement and who's getting help. HSH.com published the article "Foreclosed Vets get big settlement" this week. Here's how the article begins:
Perhaps the largest payout of the recently announced foreclosure-abuse settlement between 49 states and five of the nation’s largest banks will go to our nation’s service members who were wrongfully foreclosed on. The settlement also lays out future protections for service members.
From there the article breaks down how the major banks will take care of the payouts. It's all great information, and the Vets who went through the pain of wrongful foreclosure certainly deserve compensation. The article also got me thinking: how many Vets get done with their tours and have no place to live yet? Do most Vets have a house already or do they call mom and dad's house "home?"
For those military Vets who don't have a place to call their own, there's a great option: the VA loan. VA mortgage loans are guaranteed by the U.S. Department of Veteran Affairs. Lenders make the loans to eligible military veterans to buy, build or refinance a mortgage. You can also use the VA mortgage loan for energy-saving improvement (approved by the lender and VA) of a home. VA loans share similar eligibility requirements as FHA loans, often with lower closing costs, and more liberal terms (usually without requiring a down payment) and even negotiable interest rates. If you qualify, the VA will issue a certificate of eligibility that you can provide a lender when making application for your loan.
The best part to a VA loan: zero down payment requirement. Like the USDA Rural Development loan, it's a 100% financing mortgage program. Learn more about first mortgages with "The Essential Guide to Buying Your First Home" at the button below. The free guide walks you through the home buying process, start to finish.
(Veteran photo: Flickr user U.S. Army)