What You Need To Know About Va Home Loan Programs And Fha Home Loan Programs

When you look at VA home loan programs in comparison with FHA home loan programs, you’ll find a lot of similarities. Both of these programs are trying to get many people access to affording mortgages with good terms. The big difference are the targets. The VA home loan programs are made to benefit people who have served in the military. But between the two programs, there are federal benefits available for home financing and each fill in the others’ gaps.

About VA Home Loan Programs

VA home loan programs are made for qualified veterans as part of the benefits extended after serving in the military. But in order to qualify for a VA home loan programs, a veteran must meet specific criteria

A veteran must have a Certificate of Eligibility from the Department of Veterans Affairs
A veteran must have good credit (usually for the past two years) and an adequate credit score
A veteran must have enough income to repay the loan
A veteran must meet debt-to-income requirements as outlined by the VA home loan programs
The home must be used as a residence after closing or renovations are complete

Some other individuals also have VA home loan programs available to them, including:

National Guard or Reserve members who meet specific requirements
have not remarried
U.S. citizens and their spouses who served with an Allied country during World War II

There are many advantages in part of these VA home loan programs, such as

No down payment loans
Competitive rates (regardless of credit history) for fixed and adjustable loans
Flexible terms, lengthened terms and the right to prepay
Forbearance in case of financial hardship
Other protections and warranties against such things as inferior buildings and discrimination

But what about those people who don’t qualify or have limited or no military seruvce? That’s where they can turn from the VA home loan programs to the FHA home loan programs. Many people take advantage of the FHA home loan programs.

FYI: FHA Home Loan Programs

While there is little overt benefit of a FHA home loan program when compared to a VA home loan program, there are some. First, the FHA home loan programs are available to people who can’t qualify for a VA loan. Second, there is insurance for more than half of the loan through the federal FHA program, which you can’t get from the VA (something for vets to consider).

Among the other efforts offered by the FHA home loan programs are:

Low down payments
Adjustable payment options and term flexibility
Government loan security, which helps get better terms
Good interest rates and payments
Refinancing options for existing FHA home loan programs borrowers

With either of the loan a borrower want to get, the VA home loan programs and FHA home loan programs help qualified would-be home owners. The flexibility of the VA home loan programs and FHA home loan programs help to find the home ownership which is available to all people, including the country’s veterans.

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