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Home Loans and Other Similar Benefits of Veterans From the VA

The US Department of Veterans Affairs provides a myriad of services and programs designed to help veterans from the various armed services to receive regular benefits and support from the government. One of the key but relatively unknown programs of the VA, especially to the general public, is the Home Loan Program of the VA’s Loan Guaranty Service. Often referred to as the VA home mortgage loan, it is actually a guarantee service that makes lending to veterans a better deal for most lenders and creates more borrowing opportunities for veterans.

Loan Program Background and Basic Information

The VA mortgage loan program provide guarantees for veteran’s loans for purchasing a home or having a home built. The loan itself does not come from the VA or the government but from private lenders. In effect the government, through the VA, stand behind the home loan and in the vent that the veterans can no longer pay for the loan, the lender can got the VA to file a claim that will cover the losses incurred in the loan. This makes VA loans attractive to many lenders that then allow veterans to take out loans without a large down payment. Eligibility for the loan program depends on the several requirement stipulated by law and internal rules created by the VA. To ensure eligibility, veterans and other persons can check with experts on va loans such as qualified VA lenders as well as at local VA offices in their vicinity.

Advantages of the VA Loan Program

The primary advantage of the particular program is that the veterans can take out a loan that does not require a down payment. Also, if the veteran can make a down payment, there is a significant reduction in the VA funding fee that is proportionate to the size of the down payment. Having a VA guaranteed loan also means the borrower no longer needs private mortgage insurance and the closing costs are limited by VA mortgage requirements and can be paid by the seller if that is part of the negotiated agreement during the sale.

Other VA Loan Programs

Other than the VA home loan program, the Department of Veterans Affairs offer another type of loan to veterans named the Interest Rate Reduction Refinancing Loan or the VA refinance home loan also referred to as the IRRRL. Also called a VA to VA or streamline loan, this type of loan can help reduce the interest rates being paid by a veteran on a n existing VA loan or exchange a guaranteed adjustable rate mortgage to a fixed rate.

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