- December 29, 2017
- Posted by: David Jacobson
- Category: Uncategorized
OakStar Bank: The Benefits of a VA Loan
The bravery and service of our veterans and active military are not only what keeps us safe, but also what allows Americans to pursue their dreams freely and safely. There is no way that we could ever tangibly thank our veterans for all that we do, but the U.S. Department of Veterans Affairs made an effort to by creating VA loans. These mortgage loans allow veterans and active service members to qualify for homes that they may not have been able to without. In today’s post, David Jacobson and OakStar Bank want to talk about VA loan and the benefits of applying for one.
What is a VA Loan?
The Servicemen’s Readjustment Act of 1944 began paving the way for the VA loan system that we have today. Since the passing of that bill, the system has continued to grow and add benefits to veterans. As is true with FHA and USDA loans, VA loans are unique and while they share some characteristics with their government-backed siblings, there are also many differences.
Similar to FHA loans, VA loans are not issued by the VA, but rather guaranteed by the VA. However, unlike FHA loans, veterans don’t have to pay insurance on these mortgages, which is a major plus. They are similar to USDA loans because they offer a zero down payment program, another major plus. There is any number of benefits to applying for and being approved for a VA loan, as it essentially combines the best of FHA and USDA loans.
Some other benefits include:
- No prepayment penalties
- Lower average interest rates
- No required minimum credit score for pre-qualification
Do I Qualify?
This is trickier than you might think. As the system has evolved, so has inclusion. For example, until 1992, members of the Reserves and the National Guard were not eligible but now are. However, there is still an eligibility process, lead by a minimum number of days of completed service.
To be eligible for a VA home loan, you must meet one or more of the following eligibility requirements:
- 90 consecutive days of active service during wartime
- 181 days of active service during peacetime
- More than six years of service in the National Guard or Reserves
- You are the spouse of a service member who has died in the line of duty or as the result of a service-related disability.
If you don’t meet one or more of these requirements, you may still be eligible but will have to contact a VA loan specialist for more information.
David Jacobson and OakStar Bank Can Help
If you are a veteran or are currently an active duty serviceman or servicewoman, we want to help you live out your American Dream back at home. We specialize in VA loans and can walk you through the process. Contact us at (417) 830-7300 or visit our website for more info.