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Wartime And Peacetime Eligibility Differences For VA Loans

What are some more exact requirements for eligibility for those veterans who are interested in obtaining home financing assistance from the Veterans Administration? Briefly, a veteran is eligible for VA home loan benefits if he or she served on active duty in any of the following branches of the armed forces: Army, Navy, Air Force, Marine Corps, or Coast Guard. Furthermore, you must also have been discharged under any conditions other than dishonorable after a certain time period.

These time periods are based upon whether you served during wartime or peacetime. For those veterans who served during wartime, the timeframe for eligibility is 90 days or more. If the veteran served during peacetime, the amount of days for eligibility is 181 continuous days or more.

Specific periods of wartime and peacetime that are covered under the provision of the VA's General Rule for Eligibility, include the following periods of time:

Wartime - World War II: 9/16/40-7/25/47; Korean conflict: 6/27/50-1/31/55; Vietnam era: 8/5/64-5/7/75; Persian Gulf War: 8/2/90 – undetermined

Peacetime - Post-World War II period: 7/26/47-6/26/50; Post-Korean period

2/1/55-8/4/64; Post-Vietnam period: 5/8/75-8/1/90

How Can You Cut Down Or Eliminate Your Closing Costs?

Many veterans have the mistaken impression that the closing costs for a home loan are actually covered by a VA mortgage. This is not true, although you can do a number of things to either minimize or total eliminate many of your closing costs. Most notably, this effect can be produced by thorough structuring of the real estate contract that you obtain.

When you apply for a loan, the amount may be the purchased price or the appraised value of the house, which ever ends up being less in addition to a VA funding fee. This means that if you would like to have your closing costs to be included in the loan, you need to increase the price. More than this, you must include a stipulation in the agreement, which says that the seller will pay the closing costs and other pre-paid expenses equal to the increased price.

This will eliminate your closing costs. Your appraisal value must also equal the value of the increased price for you to benefit from this arrangement.

How Does The Veterans Benefits Act Of 2004 Affect Me

There have been a number of changes to the legal regulations that underpin the operations and services of the VA as it regards home loans and other program. For many veterans, the provisions of the Veterans Benefits Act bring up many questions about how they may get a loan processing and what sort of entitlements will be available. What is this law and how does it affect you, the borrower?

The Veterans Benefits Act of 2004 was a comprehensive update that made significant changes to the VA loan process. One primary area of changes has to do with the maximum guaranty. While it was once $60,000, the amount has been modified. In the instance of those qualifying loans that are for amount of $144,000 or more, the maximum will be a sum equal to 25% of the Freddie Mac conforming loan limit. This, itself, will be determined by another lending law called the Federal Loan Mortgage Corporation Act.

The Historical Backdrop To VA Fixed-Rate Loans

It was in 1944, that then President Franklin D. Roosevelt established what would later be called the GI Bill. The bill that was signed into office was called the Servicemen's Readjustment Act. The point of the new law was to provide military veterans with the ability to purchase homes without paying the standard required down payment associated with most standard loans.

This was the beginning of the VA loan. At this point, the loan was a fixed-rate loan that gave borrowers the ability to finance their mortgages for various term lengths ranging from 15 through 30 years. These loans had a static rate throughout the course of the loan term, which meant that it never changed.

Today's VA loans are further guaranteed by the Department of Veterans Affairs. These modern loans enable veterans to buy single-family homes, build houses, buy homes for the purposes of improvement, as well as buy townhouses or condominiums in a VA approved projects.

What Are VA Business Loans (Part Two): VPOT And Other Info

If you are a vet who has acquired a VA business loan to open up your own new venture, you may like the idea of contacting and networking with other veterans as a means to building up or expanding your business enterprises. The Veterans Business Outreach Program, known as VPOT, is a great resource that has been designed for this purpose.

Through the VPOT, you can obtain practical advice from your fellow vets in matters of business. It is way to connect and make professional as well as personal relationship with fellow veterans who understand the sort of life circumstances that have brought you to this place. It is about finding some common ground and enriching your hopes for professional financial success.

Beyond the VPOT, the VA business loan program that is fostered by the SBA provides services not only for disabled vets but also to help those who have quit active service and are in good health but lack valuable training or education that could help them success in new business ventures, etc.

?What Happens To A VA Loan After The Veteran Passes Away?

The question will come up eventually? What will happen to a home mortgage loan in the event the borrower dies unexpectedly or passes away after a long illness? The question remains the same whether you are talking about traditional types of loans or VA-guaranteed loans.

Unless some sort of mortgage life insurance coverage is obtained by the borrower, the responsibility of the mortgage loan transfers to the spouse of the deceased veteran or to the veteran's immediate family, or even to an estate. After all, the payments still have to be made. Yet, with the VA, there are other resources like its "Leniency Policy" than can be referenced in these circumstances. This policy provides forbearance for qualified borrowers who have encountered financial or medical difficulties.

If you want mortgage life insurance, you will need to obtain coverage from a private insurance company that offers this type of policy since the Veterans Administration does not offer such coverage.