Published: Sunday, April 25, 2010
Loan benefit a sweet deal for vets
Question: I am a veteran, 50 years old, and I wonder if I can still use my Veterans Affairs loan benefit. I have never used it before.
Answer: Yes, you can use your VA loan benefit any time, no matter how long you have been out of the service.
It’s a great deal.
The loan program offered by the VA is the only zero-down loan program left in today’s mortgage market.
The program works especially well in today’s slow housing market because in most cases veterans are able to buy a home with literally no money out of their pocket because the sellers are willing to pay all of the buyer’s closing costs.
This is known as a double zero-down VA purchase.
Any qualified veteran of military service can use the VA loan program, no matter how long they have been out of the military. In fact, the program can be used over and over again because the veteran’s eligibility is restored every time their old VA loan is paid off.
The minimum military service time needed to qualify varies depending on when the veteran served. For example, a veteran can qualify for a VA loan with as little as 90 days of continuous active duty during war time. But it takes up to two years of continuous active duty during peacetime for a veteran to qualify. Those who served in the Reserves or National Guard must have at least six years of service to qualify for the program. The qualification dates and required service times are quite specific.
To determine if you are eligible, go to this VA website: www.homeloans.va.gov/elig2.htm.
On average, VA loans have slightly higher interest rates than conventional 30-year fixed rate mortgages, but the ability to buy a home with no down payment, even if you have less than perfect credit, makes it unbeatable.
When you combine the advantages of zero down payment, generous qualifying guidelines and today’s low interest rates, this is a great way for qualifying veterans to buy a home.
In the past, some home sellers were reluctant to accept a purchase offer from a VA buyer because there are some additional closing costs that sellers must pay on VA deals — even if they have not agreed to pay any of the buyer’s closing costs.
Also, the house must be appraised by a VA appraiser, and that sometimes scares home sellers because they have heard horror stories about VA appraisers being very picky about the condition of a home. In my experience, those fears are greatly exaggerated.
VA appraisers tend to look for obvious property defects, such as a bad roof, peeling paint or water in the basement or crawl space. If a house is in good condition, it should pass a VA appraisal just as easily as it would pass a conventional appraisal.
In today’s slow housing market, most sellers are happy to get any kind of a purchase offer and the past prejudice against VA loans no longer exists. So talk to a bank or mortgage company and get approved for a VA loan so that you can go out and buy a home with zero down payment and zero closing costs (if the sellers are willing to pay them for you).
Mail your real estate questions to Steve Tytler, The Herald, P.O. Box, Everett, WA 98206, or e-mail him at economy@heraldnet.com.
Answer: Yes, you can use your VA loan benefit any time, no matter how long you have been out of the service.
It’s a great deal.
The loan program offered by the VA is the only zero-down loan program left in today’s mortgage market.
The program works especially well in today’s slow housing market because in most cases veterans are able to buy a home with literally no money out of their pocket because the sellers are willing to pay all of the buyer’s closing costs.
This is known as a double zero-down VA purchase.
Any qualified veteran of military service can use the VA loan program, no matter how long they have been out of the military. In fact, the program can be used over and over again because the veteran’s eligibility is restored every time their old VA loan is paid off.
The minimum military service time needed to qualify varies depending on when the veteran served. For example, a veteran can qualify for a VA loan with as little as 90 days of continuous active duty during war time. But it takes up to two years of continuous active duty during peacetime for a veteran to qualify. Those who served in the Reserves or National Guard must have at least six years of service to qualify for the program. The qualification dates and required service times are quite specific.
To determine if you are eligible, go to this VA website: www.homeloans.va.gov/elig2.htm.
On average, VA loans have slightly higher interest rates than conventional 30-year fixed rate mortgages, but the ability to buy a home with no down payment, even if you have less than perfect credit, makes it unbeatable.
When you combine the advantages of zero down payment, generous qualifying guidelines and today’s low interest rates, this is a great way for qualifying veterans to buy a home.
In the past, some home sellers were reluctant to accept a purchase offer from a VA buyer because there are some additional closing costs that sellers must pay on VA deals — even if they have not agreed to pay any of the buyer’s closing costs.
Also, the house must be appraised by a VA appraiser, and that sometimes scares home sellers because they have heard horror stories about VA appraisers being very picky about the condition of a home. In my experience, those fears are greatly exaggerated.
VA appraisers tend to look for obvious property defects, such as a bad roof, peeling paint or water in the basement or crawl space. If a house is in good condition, it should pass a VA appraisal just as easily as it would pass a conventional appraisal.
In today’s slow housing market, most sellers are happy to get any kind of a purchase offer and the past prejudice against VA loans no longer exists. So talk to a bank or mortgage company and get approved for a VA loan so that you can go out and buy a home with zero down payment and zero closing costs (if the sellers are willing to pay them for you).
Mail your real estate questions to Steve Tytler, The Herald, P.O. Box, Everett, WA 98206, or e-mail him at economy@heraldnet.com.
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