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VA Loan Program Guidelines: The Basics .

By: AccessNational

VA loan programs have been successful in helping many veterans receive money for home ownership, with little or no money down. VA loan programs don’t provide veterans with money for homes, but they give insurance to lenders who give loans to veterans that may have had difficulty purchasing a home.

VA loan programs, each subject to their own VA loan program guidelines, give veterans security, protection, and accessibility to veteran home borrowers.

Finding out what you can buy with your VA Loan Program

With a VA loan, such as those offered by Access National Mortgage, veterans purchase a number of different types of homes. The program does require, though, that the home purchased must be the primary home of the veterans, since the VA loan program, at its heart, is in place to ensure a veterans can be home owners.

VA loan program guidelines allow veteran borrowers to buy:

• Single family homes.

• Townhouses.

•Condo units (in approved projects).

• Fixer-upper homes (in which case the financing can be used for the purchase and the home improvements).

•Manufactured homes.

If needed, the VA loan programs can be used by veterans to refinance their homes, improve their homes, and/or make homes more energy-efficient.

What are the basics of the VA Loan Program Guidelines?

The first step to receiving VA Loan is receiving eligibility. That eligibility must be obtained by getting a Certificate of Eligibility from the VA, with the help of a VA-approved lender. Once eligibility has been obtained, the veteran moves onto the financial end of the qualification process. The most important factor of this process is a good credit rating. If the qualification gets the veteran borrower a loan offer, then the following VA loan program guidelines apply:

•A Maximum guarantee of 25% of the loan, up to $104,250 (in most states); a maximum VA loan amount is $417,000.

• Hawaii and Alaska: a maximum guarantee of 25%, up to $156,375; a loan maximum of $625,500 (to accommodate for higher cost of living).

• For joint spousal eligibility the maximum loan guarantee of the lesser of 40% of the loan or $36,000. (An alternative figure of $104,250 applies to some loans over 144,000.)

What are the protections of the VA Loan Program Guidelines?

Another great benefit of the VA loan program is a level of buyer protection for veterans though the certain guidelines. These VA loan program guidelines open up a number of protections to veterans, including

• Quality inspections to ensure that property meets the housing standards of HUD.

• No PMI (Private Mortgage Insurance) costs, which could lower mortgage payments by hundreds of dollars.

• Protections from predatory lenders and discrimination.

• A warranty for new homes.

• Caps on lender fees and other charges directed at borrowers.

•Compensation for fixing of any structural problems in new construction.

In addition to these protections, the VA also asks that lenders help borrowers when they experience financial problems, including forbearance, when loan payments can’t be made. This could shield borrowers from foreclosure and offer other credit protection.

The government created the VA loan program and its guidelines in 1944 to provide security and flexibility to veterans and start them on the path to home ownership. The veterans then have the protections and advantages they earned by serving their country. If qualifying veterans want to know more about these VA Loan Programs, they should consult a knowledgeable VA lender to find out all of the benefits.

Article Source: http://ezine-articles-planet.com

This article is provided by Access National Mortgage, based in Denver Colorado. Access National Mortgage provides progressive and superior financial solutions like a New Mexico FHA Loan Application, a Wyoming FHA Mortgage Calculator, debt consolidation loans, information about California FHA refinance benefits and whole host of other mortgage products all across the United States.

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