Members of the armed services and their veterans may wish to compare these loan types before making a finance decision.
VA loans are only open to qualified veterans. To qualify you must be an eligible veteran who has an available loan entitlement; you must move into and live in the home for a reasonable period of time after closing; you must have a reasonable debt to income ratio; and you must have good credit. Even though there are some limitations on who can qualify for a VA loan, they are not severely restricted to people who served in the military. For instance, after meeting certain other qualifications, Reservists or National Guardsmen can qualify for VA loans. Un-remarried spouses of veterans who died as a result of service or service-related injuries can also qualify for VA loans. As well, U.S. citizens who served in the armed forces of a U.S. ally during World War II can qualify (so can their spouses).
VA loans offer advantages over FHA loans. VA loans require no downpayment; fixed, competitive interest rates, no matter the buyer's credit history; and they have limitations (caps) on closing costs. Further, VA loans have long amortization periods (for conventional funding the terms are usually 15 or 30 years, but VA loans can be longer and afford the right to prepay the mortgage without penalty. VA loans are assumable, meaning that veterans can sell their homes to non-veterans and afford the buyer the benefits of a VA loan. One of the biggest benefits of a VA loan is forbearance. This means that the federal government extend leniency to veterans experiencing temporary financial hardship.
For more informtion on FHA & VA visit this webpage and this blog
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