VA Loans, A Gift from Uncle Sam

Uncle Sam has a gift for the men and women who serve our country. It is the VA loan. The VA loan, short for Department of Veterans Affairs home loans, is available to veterans, active service members, reservists, and members of the Public Health Service. These loans are so popular, that in the past fiscal year alone, Uncle Sam has guaranteed 300,000 VA loans totaling more than $38 billion.

Why are these loans considered a gift to our servicemen and women? Because VA loans require no down payment and are available from most lenders. Additionally, the government limits the amount of closing costs, origination fees, and appraisal fees. Because VA loan rates generally run the same as conventional rates, skipping the down payment is a big advantage. Not surprisingly, about 91 percent of VA buyers do just that.

Best of all, there is no private mortgage insurance (PMI) because the government prohibits lenders from requiring it. Not having PMI is a considerable cash savings for a borrower. For example, on a $126,000 loan, PMI would run approximately $40 to $64 a month for the first three to five years of a 30-year loan. The total savings? $1,440 to $3,840.

However, there is a downside:

* FUNDING FEES - In 1982 Congress levied a one-time funding fee on VA loans. And these fees can range anywhere from 1 1/4 percent to 3 percent, depending on the veteran's service and whether it's a first or subsequent loan. Although the VA will lower the fee if the borrower makes a down payment of at least 5 percent, and a buyer can finance the fee along with the home, there is a hidden cost. For example, on a $126,000 mortgage, a 2-percent fee can bloom into $14,474 over the 30-year life of a 6-percent loan.

* LOAN LIMITS - The maximum guaranteed is $240,000, yet buyers in high-priced markets such as California or Manhattan may have to evaluate other options for their financing. And while the eligibility certificate indicates how large a loan the government will guarantee, the vet may not be eligible. Just like a conventional loan, the actual mortgage amount will be based on income, assets, debts and credit history.

* QUALIFIYING - VA loans are available for active and former members of the armed forces who have a specific length and time of service and discharge conditions. Reservists and National Guard members may be eligible if they served at least six years and received an honorable discharge. Veterans discharged for a service-related disability are potentially eligible, as are some members of the Public Health Service and foreign veterans who served with the Allied forces during World War II. Additionally, a widow or widower may also apply for a loan, provided the spouse's death was service related. MIA and POW spouses may also qualify.

Applying for a VA loan is no different than applying for a conventional loan, except that one needs to obtain a certificate of eligibility from the VA. Not only are VA loans easy to get, Uncle Sam has made it even easier this year. The actual loan process takes about two to six weeks, the same time as a conventional loan. And just about every lender that handles FHA or conventional loans also makes VA loans.

Yet the greatest gift of all remains the fact that VA loans allow a buyer to purchase a home without investing a down payment. And that is a very good gift indeed.

Genesis Font is an SEO and Developer for LoansInteractive.com > Mortgage and Loan Officer Websites. We also offer Quality Web Hosting Services.

---

Google News Updated : Sun, 12 Oct 2008 11:51:06 GMT McCain campaign's tone likened to George Wallace's - Newsday Malaysia Star McCain campaign's tone likened to George Wallace's Newsday - 2 hours ago WASHINGTON - Rep. John Lewis, a Georgia Democrat and veteran of the civil rights movement, says the negative tone of the Republican presidential campaign reminds him of the hateful atmosphere segregationist Gov. McCain in 'hatred' war of words BBC News Obama thanks, jabs at McCain Chicago Tribune New York Times - Los Angeles Times - Reuters - AFP all 404 news articles Publ.Date : Sun, 12 Oct 2008 09:27:11 GMT American space tourist blasts off in Soyuz rocket - The Associated Press Washington Post American space tourist blasts off in Soyuz rocket The Associated Press - 39 minutes ago BAIKONUR, Kazakhstan (AP) - A Soyuz spacecraft with two Americans and a Russian on board lifted off from Kazakhstan on Sunday for the international space station. Space Toilet Fixed – For Now eFluxMedia Russia launches spacecraft with sixth space tourist China Daily KGAN - MarketWatch - Spaceflight Now - USA Today all 615 news articles Publ.Date : Sun, 12 Oct 2008 11:11:37 GMT Van driver's work in Mass. aided Nobel winners - Boston Globe Boston Globe Van driver's work in Mass. aided Nobel winners Boston Globe - 7 hours ago HUNTSVILLE, Ala.—When two American scientists won a Nobel Prize this week in chemistry, the driver of a car dealership's courtesy van had reason to take special interest. Video: Nobel Chemistry Prize Goes for Jellyfish Protein AssociatedPress The Daily Yomiuri - The Associated Press - Ars Technica - New York Times all 1,253 news articles Publ.Date : Sun, 12 Oct 2008 04:14:18 GMT Theatrical Review of Body of Lies - DVDTOWN.com Theatrical Review of Body of Lies DVDTOWN.com - 11 hours ago By Jason P. Vargo "Body of Lies" is a certain type of movie designed for a certain type of moviegoer. I think the tagline describes the movie perfectly, actually. Will 'Chihuahua' take a bite out of 'Body of Lies'? Los Angeles Times Body of Lies Entertainment Weekly E! Online - San Francisco Chronicle - Reuters - Washington Post all 1,041 news articles Publ.Date : Sun, 12 Oct 2008 00:19:39 GMT Japan says will tap FX reserve if IMF steps up bailout - Reuters Voice of America Japan says will tap FX reserve if IMF steps up bailout Reuters - 6 hours ago WASHINGTON, Oct 11 (Reuters) - Japan said on Saturday it is ready to offer a part of its $1 trillion foreign reserves to the International Monetary Fund (IMF) if the multi-national lender is to support countries facing economic crisis. Video: IMF: Timing right for G7 ReutersVideo IMF Calls for Aggressive Response to Crisis New York Times Bloomberg - MarketWatch - Financial Times - Voice of America all 2,310 news articles Publ.Date : Sun, 12 Oct 2008 05:32:02 GMT ARM Holders Would Do Well to Shop Around Now - Washington Post Sify ARM Holders Would Do Well to Shop Around Now Washington Post - 4 hours ago By Nancy Trejos The global financial crisis has affected virtually every aspect of personal finance, from mortgages to student loans to credit cards to retirement savings. Finance giants reportedly ordered to buy $40 bln of mortgage bonds ... MarketWatch Fannie, Freddie to Buy $40 Billion a Month of Troubled Assets Bloomberg The Miami Herald - Orlando Sentinel - Sunday Paper - San Jose Mercury News all 227 news articles Publ.Date : Sun, 12 Oct 2008 07:07:17 GMT Many homers, and pitches, in Game 2 - MLB.com Los Angeles Times Many homers, and pitches, in Game 2 MLB.com - 2 hours ago By Bryan Hoch / MLB.com ST. PETERSBURG -- Five hours and 27 minutes elapsed during Saturday's American League Championship Series Game 2, bookending the moments when Scott Kazmir threw the game's first pitch over home plate and BJ Upton popped its ... Up, up, and away Boston Globe Mike Timlin shoulders blame Boston Herald Los Angeles Times - Washington Times - Tampa Tribune - ESPN all 495 news articles Publ.Date : Sun, 12 Oct 2008 09:22:57 GMT RSS For Web Pages Increase Traffic

PARLOT::Ebooks, Scripts, Websites, and more...

Adsense websites

Why Choose a Remortgage?

A remortgage can be used for the purpose of gaining... Read More

Home Buyers Face Decisions that Affect Their Long-Term Financial Picture

Taking the step for prospective home buyers.into home ownership is... Read More

Mortgage Refinance - Tips to Help You Cut Fees and Costs

Saving money through a mortgage refi is more than just... Read More

Reverse Mortgages: When Is One Right For You?

How do you know if a reverse mortgage is right... Read More

Why Refinance Back into a 30-Year Loan?

One of the biggest reasons homeowners refinance their mortgage is... Read More

Refinance After Bankruptcy

Refinancing your mortgage after bankruptcy is actually the same as... Read More

Home Equity Can Create a Never-ending Money Cycle

What could you do with $10,000? Well, you can have... Read More

Home Equity Loan or Home Equity Line of Credit ? Which is right for you?

The most common type of home equity loan is the... Read More

Thinking About Refinancing Your Loan?

Refinancing your home or property is a big decision that... Read More

Refinancing Online - Tips For Getting a Low Interest Rate When Applying Online

Refinancing online is a great opportunity to find low interest... Read More

Home Equity Loan ? Home Theater Adds Fun and Value

In days gone by, the family typically spent their evenings... Read More

A Guide to Getting a Home Improvement Loan

If you've got a few things around the house that... Read More

Home Mortgage Refinancing ? What?s in Your Contract?

Are you one of the millions of Americans who will... Read More

Save Time With a Bridge Loan

Why You Need a Bridge LoanYou have to move fast... Read More

Remortgage ? When Monthly Mortgage Payments are Touching New Heights

Current economic scene has hinted towards a fall in the... Read More

Adjustable Rate Basics

An adjustable rate loan, most simply stated, means that your... Read More

Home Loans ? Lenders Continue to Offer High-Risk Loans

Home prices in the Untied States continue to soar, and... Read More

Be Prepared With Your Home Equity Loan Checklist

A home equity loan can be an excellent way to... Read More

What Is The Best Deal For A Mortgage?

Few of us invest the time and effort into researching... Read More

Basic Tips for First Time Home Buyers

The first time you purchase a home is an exciting... Read More

Home Loans and Mortgages ? The Selection Can Be Bewildering

For years, when someone wanted to purchase or refinance a... Read More

Desperately Seeking Good Leads, The Adventure Driven Loan Officer

As loan officers, the word "lead" is by far one... Read More

Mortgage Calculator ? How to Calculate Your Monthly Mortgage Payment

Just starting to shop for a new home? Do you... Read More

How Good a Deal Is Your Banks Mortgage Insurance Plan?

When you go to the bank to get a mortgage,... Read More

Mortgage Lead and Mortgage Leads

A mortgage lead is an exciting thing because you are... Read More