VA home loan programs and
FHA home loan programs have much in common. Both try to make affordable home ownership available to people, but there is a big difference to be found between the two. VA home loan programs are available specifically for those who served in the armed forces. By looking into both of the programs, mortgage-seekers can find a federal program to help with their home financing. Typically, if one program doesnt work, the other may.
VA home loan program facts
VA home loan programs are targeted at qualifying veterans, as part of the benefits given to those
who have served the country in the armed forces. In order to qualify for the loan from the VA home loan programs, a veteran has requirements
to meet.
The borrower must have good credit, including credit in good standing and an adequate credit score
The borrower has to get a Certificate of Eligibility from the VA
The veteran has to have enough income to take care of the loan
There are debt-to-income ratios to be met, which are outlined in the VA home loan programs guidelines
The home must be used as the residence after either closing on the loan or completion of renovations
There are other individuals who have access to the VA home loan programs. Those people include:
Reserve or National Guard soldiers, who meet certain requirements
Former Allies from World War II who are now U.S. Citizens (or their spouses)
Widowed spouses who have not remarried of soldiers who have died as a result of service-related injuries
Benefits of the VA home loan programs include
No down payment loans
Good fixed and adjustable interest rates, regardless of credit history
Lengthened and flexible terms of 15-30 years or more
No prepayment penalty
Assistance during financial hardship
Protection and warranty against discrimination and poor buildings
But some who have just limited time in the armed forces or who cannot qualify for VA home loan programs may still be able to work with the FHA home loan programs. Also, those with no military experience can work with the FHA home loan programs.
About FHA Home Loan Programs
For those who cant take advantage of the VA home loan programs, there are FHA home loan programs available. While the FHA home loan programs do not have many advantages over the VA process, there are some. With the FHA programs, more than half of the loan is insured, a benefit not available in the VA, which should be considered by veterans.
FHA home loan programs are similar to VA loans in many other ways, aside from the insured benefit. FHA home loan programs also offer
Low down payment
Federal security, which can mean better terms from lenders
Flexible terms
Adjustable payment options
Good interest rates and affordable payments
Refinance options for existing loans
Qualifying borrowers can benefit from either the VA home loan programs or the FHA home loan programs. By meeting the requirements of each program, borrowers can make their home ownership goals a reality with good terms and through these good programs.
