VA home loans are designed to assist those who have served in the military with the purchase of a home. There are several requirements to qualify for a VA loan, but for those who do qualify, loan terms are often better than either conventional or FHA loans. Military Service Requirements In order to apply for a home loan through the VA, you must meet certain requirements in terms of your military service. While the VA will review each application case by case, they do have a set of basic eligibility requirements that serve as a guide. The applicant must meet one of the following: have served at least 90 consecutive active days during wartime or 181 active days during peacetime, have served six years in the National Guard or Reserves, or be the spouse of a service member who lost their life in the line of duty or because of an injury or disability related to service. Veterans discharged dishonorably will not qualify for VA home loans. Income And Employment Requirements There is no minimum income required to obtain a VA home loan, although the VA does expect applicants to show steady income and reliable employment. The applicant must be […]
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Building your dream home takes a lot of time and effort, but the end result is well worth it. Chief among the steps to building that home is obtaining a home construction loan, which differs from a traditional mortgage due to the fact that the home doesn’t yet exist as collateral. If you are considering new construction, take a moment to learn about the loan process. Who Obtains The Loan When it comes to new construction, there are two methods of obtaining a loan. The first is to finance it through the builder. This is a common method when working with a large home construction company, as these companies have access to a variety of financing options. The second option is to obtain the loan yourself. This is a more difficult approach, but allows you to choose from smaller builders for your new home. This route is generally limited to those with a strong financial situation and good history, as the bank is taking a chance on an unsecured loan. Length Of The Loan And Terms The terms of a home construction loan are quite different from a traditional mortgage. Most such loans are set for no more than a […]
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If you are in the market for a new home, it’s important that you know what type of loans are available to you. Whether you have perfect credit, a few financial blemishes or are just starting out in life and want to own a home, understanding your options will prove to be invaluable during your house hunting excursion. Fixed Rate Mortgage A fixed rate mortgage is one of the most popular home loans and is commonly available as a 15 or 30 year term. Because it offers the borrower an assurance that both the principal and interest will remain the same throughout the term of the loan, a fixed rate mortgage is ideal for many. Adjustable Rate Mortgage (ARM) An adjustable rate mortgage, also referred to as an ARM loan, is one in which the interest rates adjust according to the current market. This means that interest rates can either increase or decrease at regular intervals, based on established market indexes. Interest-Only Mortgage An interest-only mortgage is one that requires the borrower to pay interest only payments for a preset number of years during the loan term. After that initial period, the monthly payments will then adjust to include both […]
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