A Beginner’s Guide To The Eligibility Requirements For A VA Loan Vs. An FHA Loan
If you are serving in the US military forces, it is well known that you will be offered certain benefits from the government for your services.
One of the most important benefits or perks is the home mortgage loan option that is available to both active and retired troops. The option offered to veteran soldiers is known as a VA home loan and assists with purchasing of new homes, or rather obtaining a mortgage to purchase the new residence. Unfortunately, less than 10% of all retired soldiers utilize this benefit.
This is due to the fact that they are either unaware of the VA loan alternative or uninformed of the various details of the loan procedure making them nervous to apply.
This article will provide information on the eligibility requirements for a VA home loan; as well as, the eligibility requirements for the alternative FHA loan.
The VA loan is highly beneficial for veteran soldiers in that it does not require a down payment, is lenient on credit rating scores, and is simple to finance; however, there are certain requirements required in order to be eligible for the loan offer.
Firstly, a veteran will need to produce a certificate of eligibility issued by the military to qualified veteran soldiers.
This certificate will not only provide notice of eligibility for the home loan but also include the entitlement amount which is the portion of the loan you will be guaranteed.
This certificate can be obtained from the VA or by asking a mortgage lender.
The big difference between a VA home loan and an FHA home loan is that the FHA loan can be obtained by almost any individual; it is not exclusive to individuals who have served in the US military troops.
While there are no income limits for FHA home loans, there are certain limits on the amount a person may borrow and it will vary according to state. The restriction regarding limits can be identified by contacting your mortgage lender.