Chicago VA Mortgage Loans
Americans, throughout the years, have enlisted in the armed forces for a number of reasons. Those reasons range from education benefits, health care, love of country and so on. One of the most under-utilized benefits offered to those who are most deserving is the VA Home Loan Program. While gaining traction and popularity, the VA has been offering this incentive since 1944 and yet only roughly 10 percent of veterans have taken advantage of it.
The way the program works can be a bit confusing at first. The VA does not actually fund the loan; the loan is funded through a private lender and backed by the VA up to a certain amount. This guarantee eases lenders’ apprehensions if the file is a bit shaky or there are blemishes on your credit report. For example, in most of the country the loan limit on a standard VA loan is $417,000. The VA will back 25 percent of that amount as a promise that in the event of a default, the lender will recoup some of the loss. The fact that the VA does back the loan at such a high rate gives you, the borrower, the opportunity to take advantage of some unheard of advantages.
Some major perks of the VA Home Loan Program include:
- No down payment required
- No monthly mortgage insurance required
- Typically lower interest rates
- Eased credit requirements
You may qualify for a VA Home Loan if you…
- Have been on active duty for 90 continuous days during wartime
- Served 180+ days during peacetime
- Served 6 or more years in the National Guard or Reserve
- You are the spouse of a service member who has died in the line of duty or as a result of a service-related disability
Illinois is home to over 700,000 veterans. Those veterans have sacrificed so much and deserve a place to call their own. The VA Home Loan Program offers veterans and their families the opportunity to purchase a home when, in some circumstances, they might not qualify by conventional standards.