VA Housing Loan: 5 Facts To Know
A VA housing loan is a mortgage that is guaranteed (insured by) the Veterans Administration. Millions of veterans in the United States are eligible for a VA housing loan. Here are five important facts to remember if you are a veteran considering a home purchase.
- To be eligible for a VA housing loan, veterans must have served on active duty. A total of ninety days of service are required during wartime. The requirement is 181 consecutive days during times of peace.
- Veterans are eligible for loans without down payments until 2011 due to the Public Law 110-389.
- Your VA housing loan will not automatically cover the closing costs, which range from 3%-5% of the property value.
- Any itemized fees and charges related to the purchase of a property, such as inspections and appraisals may or may not be the responsibility of the veteran. See your local VA office for a list of reasonable and customary fees veterans are allowed to pay.
- While poor credit within the last 12 months may be a deterrent in loan approval, VA housing loans have been given to veterans who lack established credit.
For more information about VA housing loans, visit www.valoans.com.
