We recently posted on how you can search for Madison condos approved for VA loans. In this post we share the first in a series of 3 informational articles about VA loans. Thanks to Chris Birk from Veterans United for sharing his articles with us.
Part I: VA Loan Overview
After World War II, the Department of Veterans Affairs acknowledged that few returning veterans were able to purchase a home, thus creating the VA Loan Guaranty program. Since then, about 20 million veterans, active military and their families have been able to make the dream of becoming a homeowner a reality.
These loans were created with the military lifestyle in mind. It is common that a family must relocate or deal with a member being deployed overseas, which can make it difficult for the family to find financial stability and often leads to a struggle in obtaining a home loan. For this reason, the VA Loan is one of the most flexible and low-cost lending programs in the country.
What makes the VA Loan pertinent for military families is that it is guaranteed by the government: the VA will repay one fourth of a qualified borrower's mortgage if he or she were to default on the loan. This guarantee gives lenders the ability and assurance to issue loans with competitive rates and terms, which is why the VA Loan is one of the most popular loan products.
One of the primary benefits of the VA Loan is that borrowers can purchase a home without putting any money down. Veterans and military members across the nation who choose to take advantage of what the VA Loan offers often cite the no-money-down as the program's strongest benefit.
For some time, veterans and active-duty members were unaware not only of the tremendous assistance the program offers, but that the loan even existed. Fortunately, word has spread and VA loans are becoming more and more popular. However, only a fraction of those eligible have used their benefit. With the instability of the housing market and a tight credit environment, the VA Loan provides security that no other loan on the market can.
In our next post we'll go into more detail about VA loan uses and benefits, courtesy of Chris Birk from Veterans United. Thanks once again to Chris for sharing his articles with us.
Dan Miller, Realtor, Keller Williams Realty and www.DaneCountyMarket.com
www.DaneCountyForeclosureSearch.com
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