Veterans of the Armed Forces have access to one of the best mortgage loan programs ever offered: the VA Loan. Only Vets and eligible active duty and reservists (and qualified family members etc.) are allowed to participate in this mortgage program as a reward for their military service on behalf of the US. There are a variety of VA Loans available. Below is a brief list and explanation of the VA mortgage programs available.
Available VA Loan Programs
30 year Fixed Rate Mortgage – this mortgage program is similar to other 30 year fixed mortgage programs. The interest rate for this program is fixed throughout the term of the mortgage. It is a very stable program and it is the most common mortgage program in the US.
Adjustable Rate Mortgage – this mortgage program typically has a short fixed rate period (1 year to 5 years are most common) followed by a longer period of time where the interest rate can change (and most likely will) on a monthly or annual basis. The interest rate change is based on the type of ARM you got, the margin and the index. Make sure that you completely understand the particulars of your VA adjustable rate mortgage if you decide to get one. Your loan officer should explain this information in detail.
Refinance Streamline – this VA mortgage program is only available to those who already have a VA home loan. This program provides a way for a VA mortgage to be refinanced without much needed in the way of loan qualification requirements on behalf of the loan applicant. Although little is required by the VA to qualify for this mortgage program, individual lenders can add in their own requirements. As of 2010, some lenders are requiring VA streamline refinance customers to get an appraisal, document income, and/or provide a full credit history.
These are the most common VA mortgage loan programs. Make sure you check with your VA lender before you get started on a mortgage program. Know what is required of you before you start trying to get a VA loan. Not every VA mortgage lender is the same.
