Do You Qualify for a VA Insurance?

We all know that most of us need a mortgage in order to buy a home. We go to a lender and complete all the necessary paperwork and then we can buy the house, and pay off the amount of the mortgage insuranceed to us in monthly installments.

A VA insurance, then, is a mortgage insurance guaranteed by the United States government and for the use of US veterinarians, military members, current members and spouses of selected surviving members. Veterans can then use this mortgage to purchase a single family home, condominium, multi-unit estate, manufactured homes, or new build property.

While it is the Office of Veterans Affairs that financially guarantees eligible insurances, sets rules for who can qualify and when, and sets guidelines, the money does not actually come from the government, but rather from any qualified lender (a bank or other financial institution).

The purpose of these VA insurances is to provide financing for a home for service members and their families without the worry of having to take out a down payment as you would with other mortgages. If you don’t have to come up with a down payment, more of your money can go to paying off the mortgage and that’s the idea of ​​the insurance.

Congress passed the original law in 1944, after World War II, and since then more than 20 million mortgages have been issued. After some modifications over the years, the scheme has been expanded and increased to allow more service members to qualify and include more housing options for these members.

If you qualify for a VA insurance, you are allowed 103.3% financing without private mortgage insurance which is a huge savings over a traditional mortgage. You can also get 20% off a second mortgage and up to $6000 towards energy-efficient improvements to your home. On top of this, a VA finance fee of between 0 and 3.3% can be added, again, much better than a traditional mortgage.

Joining the military isn’t easy, and it’s good to know that once you become a veteran, there is help to fund your possessions. Whether you still serve, you’re a proud vet the wife of a fallen champion, the government has you covered with perks when it comes to financing your home.