VA Mortgage Refinance Debt Consolidation Loan
From LoveToKnow Mortgage
Many veterans and active duty military personnel qualify to apply for VA mortgage, refinance, debt consolidation loans, and other affordable home loan options.
Veterans Administration Home Loan Benefits
VA loans are an excellent choice for veterans who are purchasing a home. Veterans who already own their homes may also benefit from a cash out refinance that will allow them to use lower-interest rate loan proceeds to pay off higher debt, to pay for home improvements, or make other major purchases.
About VA Loans
Veterans Administration loans are among the most popular and widely utilized benefits available to members of the United States military and veterans. These loans are made by private lenders, not by the government. Individuals seeking a VA loan must apply for the loan with an approved lender. Lenders do consider creditworthiness and current income when processing applications.
Upon approval, the Veterans Administration guarantees a portion of the loan. Because the loan is protected against loss up to the guarantee amount, veterans are an appealing target market for many lenders.
Many VA loans do not require down payments, and they typically offer better terms than conventional home loan programs. Lenders typically limit VA loans to a maximum of $417,000. Borrowers may have to pay a funding fee depending upon the amount of the loan and other factors.
Who is Eligible for VA Mortgage Refinance Debt Consolidation Loans
Military veterans with war and peacetime service experience are eligible to apply for VA loans, assuming their service discharge was honorable. Long-term reservists and national guard personnel may also qualify for VA mortgage benefits.
Additionally, surviving spouses of veterans who died during service or as a result of a service-related disability may be eligible. Spouses of service personnel being held as prisoners of war or who are listed as missing in action may also utilize this benefit.
Specific information regarding who is available for military service related home loan benefits can be found at HomeLoans.VA.gov.
Establishing Eligibility
The first step in applying for a VA loan program is to establish eligibility for the program. Veterans and other potentially eligible individuals may request a certificate of eligibility by submitting Form 26-1880 along with proof of military service to the VA eligibility center in Winston-Salem, North Carolina.
In many cases, eligibility can be established through the Automated Certificate of Eligibility (ACE) system, which can be accessed by the majority of lenders. Assuming that sufficient data are available in the Veterans Administration’s records regarding a particular individuals service history, this can be the fastest and most efficient means of establishing eligibility.
Pamphlets About VA Mortgage, Refinance, and Loan Programs
The Department of Veterans Affairs has created a series of pamphlets designed to address the intricacies of the VA home loan benefits.
- To the Homebuying Veteran: A Guide for Veterans Planning to Buy or Build Homes with a VA Loan
- Manufactured Home Loans to Veterans
- VA Direct Home Loans for Native American Veterans Living on Trust Lands
- VA Guaranteed Home Loans for Veterans
- VA Home Loans: A Quick Guide for Homebuyers and Real Estate Professionals
Finding the Loans
Many mortgage lenders are approved to process VA home loans. It’s a good idea to select a lender in your local area that has a good reputation and is VA approved. Ask people in your circle of acquaintances, friends, and coworkers for the names of reputable lenders, and then conduct your own research to determine if the organization is VA approved. If you aren’t able to get referrals in this manner it can be beneficial to look up mortgage providers and banks in your local Chamber of Commerce and Better Business Bureau directories.
You can also research approved lenders online. Available resources include:
- Ginnie Mae
- Low VA Rates
- VA Loan Central
- VA Loans
- VA Mortgage Center
- VA Mortgage Info
- Veteran Loan Center
Utilize the VA Loan Benefit
If you are eligible for the VA home loan program, it may be in your best interest to utilize this benefit when you are in the market for a new home or need to refinance your home. VA loans can save you money as a homebuyer or homeowner, and the program is appealing to lenders because of the government guarantee. VA loans can provide win-win financing opportunities for lenders and buyers alike.
Comments
Rae Ann, a lot depends on the value of the home. If your father has ample equity within the home then he may be able to look into an equity loan. With his limited income, however, he may have a hard time making the payments that would result from this type of loan. If your father is within the age range for a reverse mortgage this may be a good option for him too. Contact a suitable lender to find out his options.
-- Contributed by: Tamsen ButlerDo you provide any consolidation loans. My father-n-law is a veteran and is having financial problems. He and his wife owe 180,000 on their mortgage as well as about 90,000 in credit card bills. They only have 2500 coming in from social securtiy, so it is obvioulsy not enough to pay their monthly bills. We are trying to help so they don't have to file bankruptcy. I believe if they were able to get a consolidation loan to include all of their credit card debt, we could help them with their montly bills. We would also put their house up for sale and use the profits to pay as much of the debt as possible. The problem of course is with the market the way it is, it may be a while before we actually sell the house and then at what price can we sell it. Do you have any suggestions? Could he do a consolidation loan and with whom do you recommend?
-- Contributed by: Rae AnnThis page has been accessed 249 times. This page was last modified 15:40, 23 October 2007.
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