One of the primary elements of the American Dream his home ownership. While this is a universal goal, only a small portion of the population can purchase a home with cash. Mortgages have made the dream of ownership a reality for hundreds of millions of Americans. Nevertheless, this common loan is still a mystery for aspiring homeowners. The mortgage process may be universal – obtaining property by repaying a loan over time – there are a variety of mortgage loan types. Like any other loan, what’s ideal for one may be unacceptable for another borrower. Before delving into the realm of mortgages, it’s essential to understand the primary types of loans. It’s with this understanding borrowers may select their ideal loan type.
Although there’s a variety of mortgages available to consumers, the two most common are adjustable-rate, fixed-rate VA Home Loans. An adjustable-rate mortgage whose interest rate periodically adjusts due current market conditions. Just as its name suggests, fixed-rate loans feature a stable interest rate throughout the life of the loan. Both loans are widely available from mortgage lenders, such as Village Mortgage. While the aforementioned is open to the majority of homeowners, VA Home Loans are designed for a specific demographic. Also referred to as a Veterans Affairs loan, this mortgage is only available to those who have served in the U.S. military. If eligibility requirements are met, which are discussed below, these loans may be used to:
1. Purchase home or a condo within a VA-approved settlement
2. Build a new home from scratch
3. Purchase and improve a home
4. Conduct specific home improvements, such as enhancing the energy efficiency of an existing home
5. Purchase a plot of land
6. Purchase a new or used manufactured home
There are three primary eligibility requirements for a Veterans Affair loan, which include: sufficient income, acceptable credit score and a verifiable Certificate of Eligibility (COE). While the first two qualifications will vary based upon loan amount, the COE features specific qualifications. For example, a veteran must have served for a minimum of 90 consecutive days in a military operation. Other qualifications include six years of service in the National Guard or Selected Reserve with an honorable discharge or being placed on the retired list. Find current eligibility requirements by contacting the U.S. Department of Veterans Affairs or by visiting their website. Mortgage lenders may also provide assistance in determining eligibility and filing necessary paperwork.
Village Mortgage Company, NMLS #6331 CT #6331, RI #6331, ME #6331, Licensed Mortgage Lender NH #6331, Mortgage licensed lender in MA ML6331.
