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If you have served or are serving in the armed forces, you may qualify for a VA home loan.  Whether you currently have a VA loan or not, you may be able to use your hard earned VA benefits to save money by using one of the many VA refinance or VA purchase programs available.  A VA mortgage loan is a special type of loan that is guaranteed by the Veterans Administration.  Those who qualify for a VA home loan have served at least 90 days during war time or at least 180 days during peacetime and obtained an honorable discharge.  For military personnel in the National Guard reserves, 6 years service is required for a VA loan.  For more details regarding VA loan qualifications, you may wish to consult your regional Veterans Administration office or the official Veterans Administration web site at www.va.gov.  Expert VA Finance Specialist are standing by to assist with your VA home loan questions.

How Does a VA Loan Work?

The amount of guaranteed money in a VA home loan, also called VA eligibility or VA entitlement, differs based on the amount the VA loan is for.  A VA home loan is guaranteed with no money down for any loan up to $417,000.  Be sure to check the VA county loan limits because the Veterans Administration allows for loan amounts higher than $417,000 in high cost counties.  VA loans provide 100 percent financing and have some of the most competitive interest rates.  Since the Veterans Administration guarantees all VA home loans, you will never have to pay monthly mortgage insurance on a VA loan regardless of down payment.     

VA Fixed Rate Loans vs VA Hybrid Loans

Veteran borrowers now have the option of a fixed-rate VA loan or an Adjustable Rate Mortgage know commonly as the VA hybrid loan.  If your plan to sell or refinance you VA home loan in the nest 10 years, the VA hybrid loan may help you save thousands of dollars in interest by offering lower starting VA interest rates.  VA adjustable rate mortgages have been around since the late 80's.  In 2008, VA passed a guideline allowing the extension of VA hybrid loans until 2012.  In 1999, approximately 2 percent of Veterans used an ARM or Hybrid Loan.  In 2005, approximately 27 percent of Veterans used some form of ARM loan.  In 2008, approximately 36% of all VA loans closed where VA hybrid loans.  While these numbers were compiled internally and can not be guaranteed as 100 percent accurate, it does illustrate a trend moving towards more progressive types of VA loans such as the VA hybrid loan program.   Assistance is available if you would like to see if the VA hybrid loan is right for you.  You may wish to ask about the 3/1 VA hybrid loan or the 5/1 hybrid loan.  To read more, check out www.valendercenter.com/va_hybrid_loans.htm.