The Veterans Administration (VA) loan is specially targeted to those who have served in the military, Reserves or National Guard. After serving your country, you might want to settle down in a great Salt Lake home. Find out if you or your spouse qualify for the VA Loan Guaranty Program.
What is the VA Loan Guaranty Program?
The VA Loan Guaranty Program is basically an insurance policy – guaranteeing a percentage of your mortgage should you default. Private lenders provide the capital for your Salt Lake Home Purchase; the VA provides risk management.
Many banks are not willing to lend to at-risk debtors who might default. With the VA as a back-stop, your chances of receiving a good mortgage with an interest rate reduction are improved.
Who Qualifies for VA Loan?
The VA Loan qualifications are based on type of military service and length. Here is a general qualification guideline (requirements are subject to change):
- After 90 consecutive days of wartime service
- After 181 days of active peacetime service
- After 6 years of National Guard or Reserves service
You must present papers to show that you were honorably discharged, released or separated. The spouse of a service member who has died in the line of duty might also qualify. The VA issues the “Certificate of Eligibility” for service members or spouses who qualify.
What can I use the loan for?
The VA-guaranteed financing can be used to purchase, repair or upgrade a home, townhouse or condominium unit. You can use it to refinance too.
VA Loan Application Process
Search for your Salt Lake dream home. Find a financial institution working with the VA. Apply for VA Loan. The VA will make an appraisal of the property. Your final mortgage purchase price cannot exceed this appraised value. If the loan is acceptable, the VA issues a ?Certificate of Guaranty.?
Veterans or spouses may be able to purchase a Salt Lake Home using the VA Loan Guaranty Program. Take advantage of benefits you are due for having served your country.