Texas Vet home loans and Traditional VA loans

VA guaranteed loans are made by lenders and guaranteed by the U.S. Department of Veteran Affairs (VA) to eligible veterans for the purchase of a home. The guaranty means the lender is protected against loss if you fail to repay the loan.  The VHAP program is sponsored by the State of Texas so even if the Veteran is not eligible with VA, they may be eligible for Texas Vet provided they are a certified Texas Veteran. In most cases, no down payment is required on either loan and the borrower usually receives a lower interest rate than is ordinarily available with other loans.

Other benefits of a VA loan include:

• Negotiable interest rate.
• Closing costs comparable – and sometimes lower - than other financing types.
• No private mortgage insurance requirement.
• Right to prepay loan without penalties
• Mortgage can be taken over (or “assumed”) by the buyer when a home is sold.
• Counseling and assistance available to veteran borrowers having financial difficulty or facing default on their loan.

Other benefits of a Texas Vet loan include:

• Specified interest rate determined by the Texas Veterans Land Board
• Further interest rate discounts for disabled Veterans (must be 30% or more)
• Can be used on an FHA and conventional loan as well

For common questions regarding Texas Vet Loans and for this week's rates, please access the following links:

http://www.glo.state.tx.us/vlb/vhap/housqa.html

https://secure2.glo.state.tx.us/vlb/general/interest.cfm

Although mortgage insurance is not required, the VA charges a funding fee to issue a guarantee to a lender against borrower default on a mortgage. The fee may be paid in cash by the buyer or seller, or it may be financed in the loan amount.  The funding fee may also be waived providing documentation of a VA related indebtedness.

A VA loan can be used to buy a home, build a home and even improve a home with energy-saving features such as solar or heating/cooling systems, water heaters, insulation, weather-stripping/ caulking, storm windows/doors or other energy efficient improvements approved by the lender and VA.

Veterans can apply for a VA loan with any mortgage lender that participates in the VA home loan program. The Following must be presented to the lender to qualify for the loan:

• VA Form DD-214 (if seperated)
• Certificate of Eligibility
• Notice of Eligibility (Texas Vet applicants only)
• Statement of Service (if active duty)
• PCS orders to a Texas base (if active duty)
• Most recent LES statement (if active duty)
• Proof of VA related disability (if applicable)
• Executed sales contract (if you've found a home)
• Texas Vet Forms (link provided below-Texas Vet applicants only)

 http://www.glo.state.tx.us/vlb/forms/CertificationApplication.pdf

Please bear in mind that the items listed above are just the nuts and bolts for a VA home mortgage.  Additional documentation will be required.

Please visit my blog at: