There are a variety of different benefits that are available for Servicemember Veterans, including benefits with home mortgage financing through the Veterans Administration. Veterans are eligible for home financing options if they want to purchase a new home, if they are interested in refinancing a current loan, or even financing for home improvement. Veteran’s benefits for home mortgage financing is available for these purposes as well as other different types of home mortgage financing.
The loan programs that are available are attractive to Servicemembers as they often provide financing for Veterans at rates that trump anything available commercially. The programs are prized by lenders because they are guaranteed repayment by the federal government, that limits or eliminates the risk to the lender, which makes the Veteran and their loan very attractive to the lender. One of the different types of loans available is the Home Guaranteed Veterans Loan program. Mortgage lenders such as savings and loans, mortgage companies, banks and other financial institutions all feature this loan program provided that the individual is qualified for the Veterans loan program. This program can provide up to $417,000 dollars to the Veteran to be used for mortgage and other home refinancing purposes. There are a number of ways that mortgage debt can be a milestone, and the Veterans home loan financing programs available help to prevent such debt from being a problem. This amount is significantly higher than one can get with conventional home loans. For purposes of an existing loan or refinancing, the VA has two options for Veterans.
Cash Out- This is an option if you wish to take some or all of your equity from an existing home loan. You refinance and get a portion or all of the equity difference after taking care of the other loan, in the form of a check from the VA. Such a “cash out” refinance option is limited to $ 144, 000 dollars. Home Refinance- You can reduce your interest rate by refinancing. This is great for loans you may have gotten on your home, the advantage of the VA guaranteed loan would allow many veterans to eliminate a high interest rate loan that they may have, replacing it with a refinance using a VA home loan at a much reduced rate. The nice thing about the option of using a VA guaranteed home loan is lenders find it attractive.
The guarantee of the government stands behind the loan. With the guarantee you get a legal mortgage document that pledges the property and a promise from the Federal government to the lender. It guarantees the loan to the lender for possible non-payment, and protects the lender against default.