VA loans

U.S. Department of Veterans Affairs – VA Loans

Timely Help for Retired and Serving Veterans

(Southwest Funding is proud to do it's part in helping our Service Members Achieve their dreams of home ownership. We serve cities and states Oklahoma city, dallas, austin, kansas city, houston, albuquerque, san antonio, tulsa,Texas,oklahoma, new mexico and Missouri)

What is a VA Loan?

The VA Loans guarantee program was established to provide monetary assistance to deserving, retired and serving veterans by way of loans, so that they, (or their spouses in the event of death), could acquire the resources to purchase homes following return after completion of tours of duty in wars, or premature return owing to injury and disability. VA Loans were the most natural, logical and compassionate solution, as soldiers, serving over long periods in wars beyond US borders, missed out on opportunities to establish a foothold in the domestic economic chain, and more importantly, build credit that would enable them to purchase homes, or qualify for home loans.

Who grants VA Loans?

Contrary to the perception among many borrowers, VA Loans are essentially granted by federally-approved VA lenders such as banks and other financial institutions, and counter-guaranteed by the U.S. Department of Veterans Affairs. Simply defined, VA Loans (mortgages) are funded by approved private lenders, while a part of each individual loan is backed by a guarantee by the U.S Department of Veterans Affairs to the lenders involved in the VA Loans.

How does one qualify for VA Loans?

In essence, VA Loans are made available to all retired and active military personnel. However, there are some eligibility criteria that govern the approval of VA Loans. For example, a borrower must apply for the Certificate of Eligibility which specifies the limit of entitlement (if any) that he or she has with the VA Loans guarantee program.

Alternatively, borrowers are eligible for VA Loans if they have served the prescribed number of days of military service.

What loan limits do VA Loans offer?

Under the 2009 VA Loans program, borrowers can avail a (national average) maximum guaranteed loan amount of $417,000. The entitlement of an eligible veteran on loans up to $144,000 is $36,000 with bonus entitlements on loans over $144,000 of $68,250. In this manner, veteran borrowers can avail of $104,250 in total average entitlements, although this amount can be higher in high-cost states.

What benefits do VA Loans offer?

Borrowers can avail the multiple benefits that come with VA loans. Some of the salient benefits of VA Loan are listed hereunder:

· No mandatory ‘Down payment’.

· 100% financing on Refinances and Purchases

· Loan up to $417,000 possible (more in high-cost states)

· High basic plus bonus entitlements

· No applicable Prepayment Penalty

· No enforcement of strict income and credit requirements

· Negotiable and flexible Interest rates

· Professional counseling for financially distressed veterans

· And more

VA Loans are one of the most thoughtful and compassionate programs that the US federal government offers to veterans, as a token of the nation’s appreciation and recognition of the selfless sacrifices that such military personnel have made - (and are still making) - to safeguard our liberty and freedoms. With President Barack

Obama having formally announced that all US combat troops are to return home from Iraq by the end of 2010, one can safely assume that there will be yet another surge in applications for VA Loans, as witnessed before, following the return of millions of servicemen from the many wars they have fought to protect us all.

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