The Veterans Administration (VA) offers many mortgage loan programs for soldiers who served in any military conflict, whether overseas or domestically. The VA also has some offers that include family members of veterans. It is important to note that, when applying for a loan, the veteran or the spouse must certify that he or she intends to reside in the house in question. An exception to this is for refinancing VA-guaranteed loans as to solely reduce the interest rate - the veteran must have previously resided there, though. These loans can be applied for with any mortgage lender that participates in the Veterans Affairs' Home Loan Program.
There is quite a bit of financial information you will need to gather and submit for approval. The VA is mandated to guarantee a maximum of 25% of home loans up to a little over $100,000 with a cap on the loan of $417,000. The VA will also guarantee loans made by private lenders to help protect the homeowner from any losses in the future.
All loans must first be appraised by a VA-assigned fee appraiser. This evaluation is merely to estimate the value of the property and isn't an inspection of household defaults. They are guaranteeing the loan, not the property. The appraiser will by paid by the veteran requesting the loan upon completion of the process. This payment will be paid according to the fee schedule approved by the VA.
VA home loan guaranties can help you buy or build a home, manufatured home or lot, condo, or cooperative housing unit. They can provide assistance with repairing, altering, or improving the home you live in (including energy-efficiency upgrades). Finally, they can assist you in refinancing an existing home loan.
Further information can be found at http://www.benefits.va.gov/homeloans/.
Even if you don't have a VA-guaranteed home loan, the VA can help you. Veterans with a conventional or sub-prime loan, can rely on the VA's Regional Loan Centers for advice and guidance (call toll free - 1-877-827-3702 to speak with a VA loan technician). However, while the VA can represent the borrower on VA-guaranteed loans, in this case, the VA doesn't have that legal right, so you will need to contact the company that holds your mortgage as quickly as possible.
Thanks to the Veterans' Benefits Improvement Act of 2008, veterans with a conventional home loan have more options for refinancing to a VA-guaranteed home loan. You can refinance for up to 100 percent of the value of the property now.
If the VA is unable to assist a veteran in retaining his or her home, the HOPE NOW Alliance may be of help.