One of the benefits of military service is qualifying for loans backed by the Veterans Administration. VA loans are a part of the original GI Bill instituted at the end of World War II. Since the housing crash of the 1990s, the number of VA loans rose to a record of over 600,000 loans in 2015. Still, a number of veterans continue missing out on these benefits due to some common misconceptions about the loans.Owning a home is a big decision. Before taking the step, vets should consider the cost of renting versus that of buying. Planning to move within a few years, the availability of rentals and the price of homes are just a few of the factors that determine costs.
Some vets do not apply for the loan because they have heard that approval takes too long. In actuality, the average approval time for a VA loan is two days shorter than for a conventional loan. While some older loans took longer to close, the amount of time has decreased significantly since the year 2000.
One of the biggest benefits of the VA loan is that it requires no down payment. In contrast, conventional loans require buyers to pay at least 20 percent of the cost of the home. Another cost savings is the cost of insuring the loan. For vets with a service-related disability who receive a compensation check, the VA waives the insurance fee altogether. The VA also limits what it allows lenders to charge buyers in fees.
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Mike Frueh, head of the VA loan program, recommends more education for those who qualify. Through education, he believes it is possible to eliminate some of these myths. In tough economic times, finding adequate housing is often difficult. For veterans returning from active duty, the transition time can often make paying for a home even more difficult. Help veterans who might otherwise face losing their home due to foreclosure by signing this petition.Whizzco