Monday 8 July 2013

What Does It Mean To Refinance A Loan?

By Maryl Joop


The life of military personnel is not an easy one. Even if he or she isn't called out to war during their service time, they are called to camps, bases, and tours around the world for months at a time.

You may be wondering who a person qualifies for a va loan. To qualify for a va loan, a person must have been in the active military, naval or air service, and discharged or released from active duty because of honorable reasons.

It is important to note that you can still qualify for a va loan if you served on the Reserves or the National Guard, but you had to have served for six years or more.

Spouses (who have not remarried) of POWs, MIAs, and Reserve and Guard members are also eligible to receive a va loan, if they meet the basic qualifications for the loan.

As far as rates go, there is no hard and fast rule about rates for va loans. That is up to you and your lender to negotiate.

Here is a little bit about the history of va loans, in case you are interested. The va loan originated in 1944, with the passing of the Servicemen's Readjustment Act.

The longer you work and the higher you get, the better your retirement benefits will be. It pays to make a career out of the military life.

The VA office can also help with loans that involve repairing or altering a home that the veteran already owns. Anything that would involve improvement of the dwelling can count as a va loan.

In 1970, the Veterans Housing Act was passed. This act removed all termination dates from the application process for VA-guaranteed housing loans.

This made it easier and less stressful for veterans to secure housing loans. Additionally, this amendment made it possible for veterans to secure loans on mobile homes.

Up until 1992, VA-guaranteed loans were only available to individuals who served on active duty for specified periods of time. But in 1992, all of that changed.

With the help of the Veterans Home Loan Program Amendments of 1992, eligibility was extended to include both Reservists and National Guard members who have served for at least six years. It is important to know, however, that these individuals usually must pay a higher funding fee when getting a VA home loan.

This offers a great chance for those military personnel that no longer have the opportunities afforded to them in their youth. It also offers a relief in loan options to a surviving spouse that may not have the financial reputation needed to get them an affordable mortgage.

It is up to the veterans and their spouses to secure on their own their loan. The government will just come in to guarantee the lender against loss of principal is the buyer somehow defaults.




About the Author:



No comments:

Post a Comment