Veteran Loan Information
A ‘veteran’ can be simply defined as a person who served in the military or a senior soldier who had been in the services long enough. In dictionary definitions, a veteran can even be someone with a dishonourable discharge.
From a certain book, a humorous writer even defined a veteran as someone who “wrote a clank check made payable to the USA for an amount” that would include even his life.
The point here is there is no consistent and standardized legal definition of a veteran in the country. It then follows that the benefits given to the soldiers are as varying. In fact, they have been introduced separately by different law makers in the Congress. Each time a bill is passed, a new veteran benefit is created, along with the list of requirements. Thus, the assessment of whether or not someone is considered “veteran” under the government lies greatly on the benefit he is eyeing to get.
It is therefore imperative to amass as much veteran loan information as possible before trying to assert one’s rights as a beneficiary of such privilege.
Veteran Loan Defined
Way back in 1944, President Roosevelt passed a bill that gives veterans an opportunity to own a home without necessarily paying for a down payment. During the period, no other government program (other than the bill and the veteran loan) benefited the soldiers and their families.
Veteran loan was the same as we know it today – an option for those who served in a military in purchasing a real estate property without being burdened by hefty mortgages and high cost of down payment. The Department of Veteran affairs guarantees 25% of the loan, thereby coaxing the lenders to set aside their money down policies.
Most of the Veteran loan’s closing costs may also be rolled into a loan balance and further reduce the monthly payments of the borrowers.
Conditions of a Veteran Loan
Typically, the amount guarantees for a veteran loan is around $104,250 to $359, 650. This, of course, can be much higher in other states. In Virginia, for example, the amount of guaranteed money can reach up to $825,000.
Then again, the value of the house the veteran borrower purchases should not be more than $417,000 unless the county the live in allows higher loan limits.
Note that though veteran loans are coined as such, the government does not take the role of a lender. Rather, it acts as the co-signer of the loan and guarantees the lender sure payments even when the veteran defaults. Veterans are then given significant drop in interest rates and zero down payment terms.
But just as said, the definition of “veterans” who are viable receivers of the privilege depends on where they served, their period of service, and the kind of discharge given to them. Those who have been out of the military because of “dishonourable conditions” are not entitled to the loan.
On a lighter note, those who have clean records can enjoy a straightforward qualification process. They only have to remember that the loan cannot be used to purchase a second home or for renting a property.