Liberty Maven

Editor’s Note: Below you will find an article with information about VA home loans. Ron Paul never wavers in his support of America’s veterans. Whether it be legislating tax breaks or fighting for veterans to receive their deserved medals Paul has always been at the forefront of ensuring those that sacrificed for this country receive the recognition they deserve. In light of that we thought helping spread more detailed information about the VA loan program would be something many of our readers would be interested in.

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America’s veterans have dedicated their lives to preserving liberty and ensuring the safety and prosperity of generations. To help give back to those who have served, the Veterans Administration administers one of the best home loan programs on the market.

VA loans provide veterans with a unique degree of flexibility and financial breathing room. The Veterans Administration does not actually issue the loans. Instead, the government guarantees loans issued by outside lenders, a layer of protection that often provides veterans and their families with preferable loans terms and rates.

Veterans can purchase a home without spending a dollar on a down payment or on private mortgage insurance. Some eligible borrowers can obtain a VA loan to cover 100 percent of their home value. Closing costs are capped and can be folded into the cost of the loan as a whole.

Other benefits include a cap on interest rates for active-duty service members and the ability to prepay on loans without financial penalty. Borrowers must adhere to a VA loan limit for their given geographic area. These limits currently stretch to $1.09 million in some high-cost parts of the country. For other areas, the loan limit is typically $417,000.

To be eligible for a VA loan, prospective borrowers must first obtain a Certificate of Eligibility (COE). This document attests that a veteran meets the basic requirements to qualify for the VA home loan program.

Any military member who has served 181 days on active duty during peace time or 90 days during war time may be eligible, along with those who have served at least six years in the Reserves or National Guard. Spouses of service members killed in the line of duty may also be eligible.

Some veterans will meet the initial eligibility requirements but not ultimately qualify for a loan. But thousands make the cut every year, including those with less than perfect credit. The VA looks at a veteran’s financial history along with other key indicators. Veterans with bankruptcy or foreclosure in their past can still qualify for a VA loan.

Veterans who already have a conventional home loan can also take advantage of the VA’s lending programs. Eligible veterans who have served and are now struggling to pay their mortgage can refinance up to 100 percent of their home value through a VA loan.

The VA’s refinancing program is just one more way to honor those who have served our country.