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Archive for category VA Loans

How Military Service Can Help You Get Through College

Feb 25

Posted by Admin in VA Loans | Comments off

There is much to profit from when you want to get an education in the army. The army gives a lot of different options on how to go about it.  Having the army pay for your education is one of the greatest benefits soldiers can have. Not only can you attend at a qualified four-year university or community colleges (over 1,900 the army associates with), but you can also obtain your education online (GoArmyEd.com) or in learning amenities on military posts (most don’t even have to leave base due to satellite campuses). The Army can also help pay off existing loans you may have.

The army can also help pay for a soldier’s tuition. They allow up to $4,500 each year, as long as the cost for each course isn’t more than $250 per credit. There are a number of programs the Army has to assist in paying for your schooling. These programs include the following: the Montgomery GI Bill (MGIB) and Army College Fund (ACF), Post 9/11 GI Bill, Reserve Officers’ Training Corps (ROTC) Scholarship, and the College Loan Repayment program.

The Montgomery GI Bill & Army College Fund allows a total of $83,448 to help pay for the cost of college—that’s a lot of money! You can qualify by giving—during your first year while being in the army–$100 each month.  There is also a Reserve Montgomery GI Bill you can be eligible for by being in a certain army skill position in the reserves. If you are selected you can get $11,988 to help pay for your schooling.

The Post 9/11 GI Bill is next.  This can benefit not just the soldier, but can be transferred to the spouse or children. If the soldier was on active duty after 9/11 for a minimum of 3 months then the army will pay 3 years of fees, tuition, books, supplies, and a monthly living stipend.

Another program the army does is the ROTC Scholarship. This provides tuition fully paid for and money for books. This yearly amount can be a total of $5,000 for soldiers on over 700 campuses.

And finally, a way for a soldier to have the army help pay off student loans is called the Army College Loan Repayment program. Those benefited must be on active duty for at least 3 years and get receive $65,000.  For those who are in the Army Reserve, they must serve there for 6 years to get as much as $40,000.

As you can see, the Army has many different ways to help a person pay for their education. It has helped get numerous soldiers get their degrees that otherwise wouldn’t have had that opportunity.

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Roadblocks For VA Purchase

Jan 9

Posted by Blog Admin in VA Loans | Comments off

VA loans have offered home loan financing for many years, and are considered a great opportunity for veterans whom qualify; allowing them to become home owners, even if they do not meet all of the standards that are expected of the rest of society on conventional loans. Among the many benefits of the VA loan, there are a few set backs or road blocks, that you will need to consider when trying to obtain a VA loan. These so called “road blocks” are not there to limit eligibility for VA loans (whether you are looking to get a Georgia VA Loan, or any other state VA loan), but to protect the lenders with certain guidelines. So here are the most common road blocks to obtaining a VA Loan

  1. With every VA purchase loan, there is a pest inspection that is required. This is routine, but can become frustrating to home buyers trying to purchase a home if something goes wrong with the inspection; although, this could also be a good thing because it makes borrower aware of any problems that there may be, before purchasing the home.
  2. If the property has a different source for main water, other than what is commonly used (i.e. a well for main source of water for home), they will be required to have an inspection on water, to insure that it safe, and meets local requirements.
  3. The loan also requires a full VA-approved appraisal inspection, which tend to be more stringent than normal conventional appraisals, and are to be completed by a VA-certified appraiser.
  4. There is a required residual income test that is performed when determining eligibility, to determine borrowers’ discretionary cash left at the end of every month; requirements can vary by region.
  5. Another important requirement for eligibility is based on honorable military discharge, without it you will not qualify for the VA loan entitlement.

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The Basics of a VA Loan

Dec 14

Posted by Blog Admin in Mortgage, VA Loans, VA Streamline | Comments off

Veterans Administration loans (VA loans) are among the most popular and widely used loans, with benefits available to members of the United States military and veterans. It is a loan that is guaranteed by the federal government, and available to veterans that are eligible. Though the loans are made by private lenders, but since they are guaranteed by the federal government, the lender is protected against loss should the borrower default on the loan. This is beneficial to both parties, allowing borrowers to receive a home loan with no down payment, negotiable interest rates, comparable closing costs to other loans or lower, no private mortgage insurance, and no prepayment penalties.

A basic VA home loan entitlement is $36,000, although, most lenders will lend veterans up to four times the amount of the veteran’s entitlement. For loans that exceed $144,000, additional entitlement may be available. As of January 2006, qualified veterans can now get a no down payment loan up to $417,000.

VA benefits are not only limited to new home buyers, veterans who already own their homes may also benefit from a cash-out refinance. A cash-out refinance allows you to get a lower-interest rate loan to pay off higher debt, to pay for home improvements, or make other major purchases.

How do you know if you are eligible for a VA loan? The first eligibility requirement is that you must be a veteran. However, being a veteran does not automatically does not necessarily guarantee a loan. Lenders must have proof of military service and discharge must have been honorable. Long-term reservists and National Guard personnel, as well as, surviving spouses of veterans who died during service or as a result of a service, may also qualify for VA mortgage benefits. The veteran must sign a certified statement saying that they will occupy the home, and the property purchased must be on U.S. soil or in a U.S. controlled territory.

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What is a VA Loan?

Nov 19

Posted by Blog Admin in VA Loans | Comments off

A VA loan is a mortgage loan that is guaranteed by the U.S. Department of Veterans Affairs, that was designed to offer long-term financing to eligible American veterans and their families. The VA loan program helps supply home financing to qualified veterans in areas where private financing is not generally available, and helps veterans purchase properties with no down payment.

The VA loan allows veterans 100 percent financing without private mortgage insurance or 20 percent second mortgage. There is a VA funding fee of up to 3.3 percent of the loan that must be paid, but is allowed to be financed. In a purchase, veterans may borrow up to 100 percent of the sales price or reasonable value of the home, whichever one is less. With no monthly PMI (private mortgage insurance), which is an extra insurance that lenders require lenders to pay if their loan amount exceeds 80 percent of their new home’s value, more of the mortgage payment goes directly towards qualifying for the loan amount, allowing larger loans without increasing monthly payments. However, in a refinance, veterans may only borrow up to 90 percent of reasonable value.

As far as eligibility, any veteran or person that is still in the Armed Services, that has not been dishonorably discharged, and who has served at least 181 days (90 days in wartime) is eligible for a VA home loan. A FICO credit score of 580 is the standard that the VA sets for home loans, although this can be flexible. Credit problems and debt income ratio can also be factors in eligibility; such as, bankruptcy or foreclosure without a one- to two-year record of good use of credit following.

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