If you are a veteran, an active duty service member, a National Guard member or a reservist, you may qualify for VA mortgage loans, El Cajon, CA, provided you meet the basic service requirements defined by the Department of Veterans Affairs.
If you are married to a military member who died while on active duty or as a result of a service-related disability, you may also be qualified.
Ultimately, the Veterans Affairs has the final say on your eligibility for the home loan program, but you can get higher chances of approval if you meet one or more of the following conditions:
Aside from no down payment requirement, no private mortgage insurance, and having competitive interests, VA loan offers other benefits, including the following:
No prepayment penalty. Other types of loan have prepayment penalty; that is, when you pay off a home loan before it matures. In VA loan, however, this does not apply. So, this is a good option in case you want to pay off your loan earlier.
The closing cost limits. Though all mortgages come with fees and closing costs, VA loan actually limits what veterans can be charged on these particular expenses. Also, some costs and fees must be covered by other parties in the transaction. These set-ups help provide some level of safeguards, making homeownership becomes more affordable for qualified homebuyers.
Basic allowance for housing. This is another benefit that a qualified active military member can avail of. The reason for this is that, lenders can count your Basic Allowance for Housing as effective income. Meaning to say, you can make use of BAH to pay some or all of your monthly mortgage dues.
Additional facts: BAH varies based on your geographic location, your pay grade, as well as on your number of dependents.
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