Why You Should Take Out Your VA Home Loan Now

Being in the United States military has it perks - as well it should. Members of the military lay their lives on the line to secure the blessings of liberty that we all share. One of the benefits of military service is that you can qualify for a great VA home loan to buy the home you need.

Qualifying Military Personnel And Spouses

All members of the military, including those who are retired, qualify under VA rules for home lending options. For Army, Navy, Air Force, and Marine personnel, all service men and women who served at least ninety days during war time or six months during peace time qualify; for those who enlisted after 9/7/1980, two years of service is required. National Guards and Army Reservists who have been enlisted for six years also qualify. Surviving spouses for an otherwise qualifying military personnel who died while in service, is missing in action or a prisoner or war are also eligible, as long as the spouse has not remarried.

Guaranteed Loan With Low Interest Rates

The VA loan is guaranteed by the U.S. Department of Veterans Affairs, and has been helping veterans obtain financing for buying their homes since 1944. The VA does not directly supply the funding for the purchase of your home, it simply guaranteed repayment to the lender. The property will be appraised by the Veterans Administration, and if the VA finds the property acceptable under their guidelines, they simply guarantee the lender that the principle amount of the loan will be paid if the buyer should default or fail to pay for the home. This guarantee makes VA loans available at super low interest rates with many lenders.

Get Your Debt Ratio Down

While the VA home loan is a guaranteed loan product, it is still credit based and your eligibility will be determined in part based upon your debt ratio. If you are an otherwise eligible borrower but you have quite a few open lines of credit, you should close all of them that you do not necessarily have to have, such as credit cards. Leave just one open credit card.

If you have a car loan, try to pay off as much of the principle as possible before applying. The maximum debt ratio that VA loans can be processed and approved at is 41% - which means that eliminating unnecessary open accounts is vital. You should have no more debt that 41% of your available income, including the payment on your new VA loan to be approved.

Online Lenders Of VA Loans

You can find additional savings on your VA loan by seeking out the services of a reputable online lender. There are lenders who specialize in writing VA loans on the Internet, and their expertise in getting approvals can be very beneficial for you. Additionally, Internet based lenders historically offer reduced rates of interest on their VA loan products.