Purchase your new Home with VA Home Mortgage Loan Rate

Purchase your new Home with VA Home Mortgage Loan Rate

A home loan which works within the program of a VA Home Mortgage loan rate is composed of mortgages with low interest rates in order to assist veterans in paying their home loans or in purchasing a new residential property. This government program is offered by the Department of Veteran Affairs in coordination with private lenders. In 2011, it is estimated that there are 1.5 million active members of the program all across the country. If you are a member of the armed services and you are planning to purchase a new home, then joining the program will prove to be relevant and beneficial to your needs.

Are you eligible?

In order to avail of the VA mortgage loan rate, you need to be a member of the US armed services or have serviced in the military in the past years. As part of the application process, you will need to acquire a Certificate of Eligibility which can be secured from the Department of Veterans Affairs. You are required to complete the application Form 26-1880 for VA, as well as exhibit proof of your employment under the armed services. Eligible members can avail of the VA loan program if they have actively served for 181 days (peacetime) or 90 days (wartime), worked with the Selected Reserves or the National Guard for six years. Spouses of war veterans who have been killed while in service can also obtain veterans assistance provided that they have not remarried. In addition, members of the military who were dishonorably discharged can also acquire eligibility.

Options for VA loans

The VA mortgage loan rates which are offered to active borrowers vary depending on several options. One option would be to acquire a fixed interest rate for a longer period of time. Extending the duration of payment to 30 years will help you pay back with your mortgage with lower monthly rates. Another option would be to avail of the VA Streamline plan wherein the interest rate will be lowered down, although there will be no cash-out possible upon closing. Lastly, you are also given the option to shorten the duration of your mortgage payment which will help in further lowering the rate of interest on your mortgage payment. This option is quite beneficial in a longer term since you will pay less with the interests and there are no fees associated with early repayment.

VA loan policies on property transfers

One of the main policies revolving home loans is that you need to show proof that you are occupying on the property. However, you can still make use of the VA home mortgage loan rate that is set by the VA office even when you plan on selling it to a new owner, as long as you comply with the legal process of transferring.

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