Pros And Cons For Va Home Loans

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Pros And Cons For VA Home Loans


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A VA loan is a loan which is available to all qualified war veterans, which is to a certain extent guaranteed by the Department of Veterans Affair.

The loan is issued by any qualified lender and is actually a mortgage loan. The main purpose of the VA home loan is to provide reasonable home loan rates for war veterans with no down payment required for purchase of a house and also to make financing easily available for war veterans.

Here are some of the pros and cons for VA home loans.

The biggest advantage of the VA home loan is that the U.S Department of Veteran Affairs guarantees anywhere between one third to half of the loan amount, which means that even if the borrower defaults on their loan, the VA will pay back a certain percentage of the loan which is guaranteed to the lender, and thereby minimizing the losses of the lender. This makes it easy for veterans to secure home loans. Another big advantage while purchasing a house using a VA home loan is that no down payment is necessary to actually purchase the house, and usually, the seller has to pay all the closing costs associated with the loan. Other advantages include no mortgage insurance and no penalties for prepayment of the loan either.

The biggest disadvantage of a VA loan is that since sellers are required to pay closing costs, they are often reluctant to negotiate selling costs. Also, VA loans are notorious for taking a longer time to process as compared to conventional loans. But when you consider the pros and cons of VA home loans, the advantages far outnumber the disadvantages.

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Pros And Cons For Va Home Loans

 
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Home Loans :

Va-Loan-Requirements      A VA loan is kind of housing loan given to veterans which is guaranteed by the U.S Department of Veteran Affairs. OF course, with this kind of help being given out, VA loan requirements are rather stringent and one must qualify as a veteran or be currently serving in the United States military. More..



 
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Pros And Cons For Va Home Loans