VA Loan Program Guideline basics

VA loan programs have assisted many veterans receive housing financing with little or no money down. While VA loan programs don’t provide direct funding, they do insure loans for veterans allowing them to tap into loans without down payments, even on larger loans. Without the security of these VA programs, many veterans would find it hard—if not nearly impossible--to by a home.
Many VA loan programs, with their own guidelines, give the security and protection a potential veteran home buyer needs.

VA Loan Programs: What Type of Home You Can Buy

VA loan program provide veterans access to many types of properties. The one restriction is, however, that the property must be used as a primary residence, since the program intent is to give vets access to home ownership.

VA loan program guidelines let veterans buy:

• Single family homes
•Condos and townhouses in approved projects
• Houses in need of fixing up. The financing can be taken on both the purchase and the improvements of homes.
• Manufactured homes on lots.

Additionally, VA loan programs can be used for refinancing existing loans and for home improvements, including improvements of energy efficiency.

VA Loan Program Guidelines

The most basic of the guidelines of a VA loan program is eligibility of the veterans. A Certificate of Eligibility can be obtained with the help of a VA lender, like Access National Mortgage. After obtaining the certificate, the VA loan program then looks at financial qualification and credit rating. Assuming the guaranty is offered, these VA loan program guidelines apply:

• A Maximum guarantee of 25% of the loan, up to $104,250 (in most states); the maximum VA loan amount is $417,000.
•Hawaii and Alaska: max guarantee of 25%, up to $156,375; the maximum VA loan amount is $625,500 (to accommodate for higher cost of living).
•For joint spousal eligibility: maximum guarantee of the lesser of 40% of the loan or $36,000. (An alternative figure of $104,250 applies to some loans over 144,000.)

VA Loan Program Protections

VA Loan Programs offer great buyer protections for veterans who can take advantage of the many benefits, which includes:

• No Private Mortgage insurance costs that can increase your mortgage payment.
•Routine inspections to make sure that properties meet HUD housing standards.
• Protection from discrimination and predatory lenders.
• Warranties on new homes, and compensation for the structural defects on inspected constructions.
•Caps on fees to lenders and other charges on VA borrowers.

The VA also encourages lenders to work with veterans who may become temporarily unable to meet their loan payments. This adds a layer of protection against foreclosure and credit problems that may occur under some circumstances.

The government has developed and improved its VA loan programs, building in flexibility and security in the VA Loan program guidelines, since the program began in 1944. The VA loan programs give financing advantages to veterans. Qualified veterans should talk to VA lenders to see how the VA loan program guidelines can help them.

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This article is provided by Access National Mortgage, based in Denver Colorado. Access National Mortgage provides progressive and superior financial solutions such as Alaska FHA home loan programs, Oregon VA home loan programs, debt consolidation loans, information about Washington FHA Refinance Benefits, and whole host of other mortgage product all across the United States.