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Naval Base Kitsap | Bangor Sub Base | PSNS - VA LOAN -

By
Real Estate Broker/Owner with HOMEFRONT Realty WA State Licence #23384

 

I am sure you have heard all the doom and gloom from a million different news reports concerning the lending industry mess, how several loan programs once available are no longer, how zero down loan programs are almost non-existent and how hard it is right now if you have little to zero money available for a down payment. 

But wait; are you a military member or a veteran?  If you are the news isn't as bad.  With your VA Guaranteed Home Loan benefit you can still obtain a loan with no down payment and a fixed interest rate that is as good as or better than a conventional mortgage rate.  This is the time for a VA Loan! What a great benefit to those of you that have served our country!

 

 

What is a VA Guaranteed Home Loan?

 

Many have the misconception that the military is the organization loaning the money. No they are not. Your VA Guaranteed Home Loan will be made by a private lender, such as your bank or a mortgage company of your choosing that has VA lending approval. 

The guaranty means the lender is protected if you fail to repay the loan.  This is also why you will not have to pay private mortgage insurance (PMI) for a zero down loan (if you could find one).  Normally a lender would require a down payment and/or PMI to obtain a loan, since the VA Home Loan has a guaranty which replaces these you will be able to obtain your loan without, but with the same financial terms as if you had made a down payment.  The risk is removed for the lender when the VA gives them that guaranty.

 

Of course you still must meet income and debt requirements, your credit reports will be used and if there are items in your history that are derogatory you can be denied a loan even though you have your Certificate of Eligibility.  The VA cannot demand a lender make a loan to you that would violate their lending practices. 

Lenders also must comply with the VA rules and policies when it comes to income and credit standards.  Just having the benefit is not enough, you must be credit worthy. 

If a lender is unwilling to approve you for a loan the only thing the VA can do is suggest that you try other lenders. 

 It could just be the perfect time for you to purchase a home with your VA benefits.  Interest rates are at all time lows and prices in the Kitsap area are amazing.  There are some awesome deals out there.  Now, remember that the housing market isn't moving as fast as it was years past, so you must be able to stay in this home longer than that 3 yeas.  So, if you have a plan to be here longer you just might want to jump at these low home prices. 

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Jo SossAuthor:Jo Soss

Jo Soss is the designated Broker and the owner of Homefront Realty in Bremerton Washington. Selling real estate in the greater Puget Sound area since 1994 she has vast knowledge in all aspects of a real estate transaction. Using today's technology with her signature personal service allows her to achieve complete customer satisfaction.

Comments (4)

Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Thank you for the post. Many veterans may not be aware of the program.

Jul 27, 2010 12:41 AM
Jo Olson
HOMEFRONT Realty - Kettle Falls, WA
Retired - HOMEFRONT Realty @ LAKE Roosevelt

Gita, Sometimes I am surprised how many military members don't understand their well deserved benefits.

Jul 27, 2010 01:00 AM
Kathy Torline
ERA Herman Group Real Estate - Colorado Springs, CO
Colorado Springs Real Estate Blog 719-287-1049

Good blog post, it's a wonderful way for military folks to buy a property.

Jul 29, 2010 01:18 AM
Jo Olson
HOMEFRONT Realty - Kettle Falls, WA
Retired - HOMEFRONT Realty @ LAKE Roosevelt

Kathy, Thanks. Not many other zero down loans out there anymore!

Jul 29, 2010 01:33 AM