Veterans have traditionally been one of the biggest groups in society to experience homelessness. This has especially been the case for ex services personnel suffering from physical and mental disorders, such as PTSD. Once veterans are homeless it can be difficult for them to maintain a roof over their heads in the future. They represent a large proportion of the homeless population in the US.
However, there is some good news. The figures for homelessness in veterans are decreasing. This is partly due to the work of the Department of Veteran’s Affairs. They provide a considerable amount of support to veterans, including VA loans.
The aim of VA loans
Although they play a big part in helping today’s veterans avoid homelessness, VA loans are not a new concept. They were first introduced in 1944, in recognition of the fact that service personnel needed an affordable means of buying property on their return to the US. Over the years they have been used by millions of veterans to buy a home for them and their families.
VA loans are as much in use today as they have even been, with professionals such as https://thewendythompsonteam.com providing advice and support to veterans who want to apply for a VA loan.
The VA loan scheme is intended to help today’s veterans to circumvent the hurdles that acquiring a mortgage can present. These hurdles include rising interest rates and the fact that lenders have stricter policies in place for mortgage awards than they did prior to the housing crash. These factors make it a lot harder for people applying for a regular mortgage to acquire funding.
Lower interest rates of VA loans
One of the biggest advantages of VA loans is that borrowers can normally secure lower interest rates than normal. This is due to the fact that the Department of Veteran’s Affairs provides guarantees for VA loans. As a result, lenders are more inclined to provide advantageous rates as they know they will not lose all of their money should the borrower experience difficulties and be unable to make repayments.
Most VA loans also come with no requirement for a down payment. This is a big financial advantage for veterans as most regular mortgages require a down payment of 20%. A further financial advantage can be had from the fact that there is no requirement to purchase personal mortgage insurance (PMI) for anyone who signs up for a VA loan.
Veterans who have problems affording to keep a room over their heads benefit greatly from the availability of VA loans. They provide them with the opportunity to purchase a property more affordably, subject to certain restrictions and examination of their credit rating. Veterans looking to take advantage of the VA loans scheme should approach a recognized lender for advice about eligibility, or take a look at the website of the Department of Veteran’s Affairs where a full range of information is available.
January 15, 2019