How VA Loan Program Guidelines Work For You .

VA loan programs have been essential to helping thousands of veterans finance homes without much of a financial burden. While VA loan programs do not provide the money for the purchase of a home, they do insure the loans veterans are seeking, so that veterans may qualify for a loan (often a large loan) without a down payment. If veterans didn’t have access to VA loan programs, many veterans would have a tough time buying a home on their own.

These varied VA loan programs, which are all subject to their own particular guidelines, provide veteran home borrowers a level of security, protection and access to loans.

VA Loan Programs: What Type of Home You Can Buy

VA loan program give veterans access to many types of properties. The one restriction is that the property must be used as a primary residence, since the VA loan programs were made to give vets access to home ownership.

VA loan program guidelines allow veterans to buy:

• Single family homes.
• Townhouses.
• Condo units (in approved projects).
• Fixer-upper homes (in which case the financing can be used for the purchase and the home improvements).
• Manufactured homes.

VA loan programs can also be used for refinancing existing loans and for home improvements, including improvements of energy efficiency.

What are the basics of the VA Loan Program Guidelines?

A veteran must first obtain eligibility when starting the VA Loan process. That eligibility must be obtained by getting a Certificate of Eligibility from the VA with the help of a VA-approved lender such as Access National Mortgage. Next, the financial end of the qualification process begins. The most important factor during this process is a good credit rating. If the veteran receives a loan offer, then the following VA loan program guidelines apply:

• A Maximum guarantee of 25% of the loan, up to $104,250 (in most states); a maximum VA loan amount is $417,000.
•Hawaii and Alaska: a maximum guarantee of 25%, up to $156,375; a loan maximum of $625,500 (to accommodate for higher cost of living).
• For joint spousal eligibility the maximum loan guarantee of the lesser of 40% of the loan or $36,000. (An alternative figure of $104,250 applies to some loans over 144,000.)

What are the protections of the VA Loan Program Guidelines?

Another great benefit of the VA loan program is the creation of a level of buyer protection for veterans. These VA loan program guidelines open up a number of protections to veterans, including:

•Quality inspections to ensure that property meets the housing standards of HUD.
•No PMI (Private Mortgage Insurance) costs, which could lower mortgage payments by hundreds of dollars.
•Protections from predatory lenders and discrimination.
• A warranty for new homes.
• Caps on lender fees and other charges directed at borrowers.
• Compensation for fixing of any structural problems in new construction.

In addition to those protections, the VA also asks that lenders help borrowers when there are financial problems, including forbearance, when loan payments can’t be made. This could shield borrowers from foreclosure and offer other credit protection.

The government created the VA loan program and its guidelines in 1944 in order to give the security and flexibility of the program to veterans in order to start them on the path to home ownership. The veterans then have the protections and advantages they earned by serving their country. If qualifying veterans want to know more about these VA loan programs, they should consult knowledgeable VA lenders and find out all of the benefits.

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