The “American Dream” of homeownership has remained the constant aspiration of Americans throughout the years. Even as demographics shift, young Americans aged 18-34 still maintain the same desire for homeownership as previous generations did. In a recent survey of young people, 84 percent of respondents stated intent to someday buy home. Despite this aspiration, a fundamental gap seems to exist between the want to buy a home and the ability to do so. With an increasing rate of foreclosures in U.S. residences coupled with the number of unemployed Americans, financing a home purchase has become exceedingly difficult. With the Great Recession of 2007-2009 a recent memory, more and more Americans are acutely familiar with a tumultuous economy. Despite efforts carried out by our government to stabilize the economy, the jobs generated are still not adequately providing jobs to everyone. Simply put, an annual reliance on unemployment benefits is not enough to sustain jobless people.
Fortunately for veterans, who represent a particularly vulnerable segment of the population when it comes to a difficult economy are given a leg up in acquiring home-purchase financing. The VA Home Loan, by providing eligible candidates with lax underwriting guidelines, improved debt ratios, competitive interest rates, and no private mortgage insurance requirements presents a far more advantageous loan for veterans than traditional loans do. Because the VA insures the loans issued by the VA loan program, lenders are guaranteed repayment of the principal, making financing more readily available for military members who qualify.
Surviving Military Personnel
Representing this county as fighter for a free world, American soldiers often come back home without an adequate livelihood, while also suffering from high rates of PTSD and homelessness. A concern rightly exists for the future of these brave men and women. Many former military members run into a great deal of adversity when trying to purchase a home after service. Not surprisingly, a recent study revealed that a large percentage of former military were unaware of the VA home loan program. As the conflicts in Iraq and Afghanistan wind down and more and more troops come home, housing continues to be a major problem for soldiers and their families. In response to this, the U.S. Department of Veterans Affairs (VA) has collaborated with the Federal Housing Association to establish the VA Home Loan program in the effort to help returning soldiers and their families who have survived the loss of their relatives in combat to own homes.
VA Residential Loan Law
To be approved for a VA loan, you must be an eligible veteran or active duty service member. Qualification requirements for the VA home loan are contingent upon receiving an honorable discharge as well as continuous service of 90 days during war time or 181 during peace. In certain instances surviving spouses may also qualify.
Steps to VA Loan Qualifications
Securing a VA residential loan requires the applicant to undergo a specific process. The first step in this process is to apply for a Certificate of Eligibility in order to prove that you meet all VA loan qualifications. Next are the selection of the home you wish to purchase and the signing of the purchase terms and conditions. Once done, you must request an appraisal from the VA. Your lender should facilitate the request for an appraisal online through The Appraisal System, a centralized application that allows convenient and fast access to an appraisal request. After your request is granted, apply for the VA residential loan to your mortgage lender. This will enable the collection of credit and income data suitable for the loan. If the lender is permitted by the VA to process loans on an automatic approach, the loan can be accepted and closed through the receipt of the appraised value determination without the need to wait for a VA evaluation of the credit application.
VA Home Loan Program
The VA Home Loan program is probably the most advantageous entitlement available to veterans. This is a great way for military members to receive an award for their services, thus being allowed a sustainable approach to home ownership. The “American Dream” can still be a reality even during harsh economic times.