Mortgage Loans For Veterans: Who Qualifies and What Are The Conditions

Since the end of World War II, US service men and women have been able to access financial support through the VA. It has proven to be a major success, with financial packages from mortgage loans for veterans to debt consolidation helping tens of thousands when they struggle with finances outside of the services.But there is some confusion over who actually qualifies for this type of loan. The fact is that getting mortgage approval with bad credit is not easy as a civilian, and with the salary limits in the military, a lot of help is needed to buy a home. Originally designed to help GIs returning from war to establish themselves in civilian life, far more qualify for the scheme today than back then.There are also restrictions over the type of homes that can be bought with a VA mortgage loan, so there is plenty to consider before applying.Advantages of VA FinancingSo, what are the advantages of getting VA-sponsored mortgage loans for veterans rather than civilian mortgages. Well, the obvious advantage is in the cost. The VA guarantees 25% of the loan, which means lenders are happy to charge a lower interest rate on the sum granted.Of course, that level of support also plays a big part in securing mortgage approval with bad credit. Civilians can face a tough time in that regard, with many lenders not willing to take on the risk. But with such a large share guaranteed, the risk factor is lowered.Finally, with 25% of the purchase price guaranteed through VA mortgage loans, there is no need for a down payment. This takes a lot of the pressure off the borrower, who would otherwise struggle to save 5% to 10% of the price for that purpose.Who Qualifies For a LoanAs former members of the armed forces, it is only logical that veterans should benefit after the commitment they showed in serving their country. But there is some confusion over who can qualify of the low-cost mortgage loans for veterans. In fact, it is not just army that are eligible.There entire range of eligibe service men and women is extensive. As well as army, navy and air force, members of the National Guard and reservists can also look forward to securing mortgage approval, with bad credit not the issue traditional lenders would make it out to be.Also eligible for VA mortgage loans are US citizens who served in any armed force allied with the US, the wife or husband of living qualifying veterans, and the wife or husband of an American soldier serving as a prisoner of war or who is missing in action for more than three months.What Homes Can Be BoughtOf course, as much as every home hunter would love to buy that mansion on the hill, there are limits to the types of property that mortgage loans for veterans can be used to buy. For a start, it is not possible to buy a property abroad, though it is possible to buy a home within the US territories, making Guam okay.Also, these loans cannot be used to purchase property with the intent of renting it. This is to ensure that the system is not taken advantage of by entrepreneurs, even if they are ex-servicemen or women. Securing mortgage approval with bad credit should help applicants secure homes, not assets.The main categories of property that qualify are manufactured homes, newly constructed residences, townhouses, and single family homes. What matters is that VA mortgage loans are used to house families that are entitled to, as well as in need of, financial help.