VA loan lending is financing approved and provided as per the requirements of the Department of Veterans Affairs. These loans are virtually identical in character to term loans but has incredible benefits compared to conventional loans in terms of interest rate and flexibility. They are affordable to veterans over the life of the agreement, but because of the nature of the loan involved, usually have lower interest rate than other loans. VA loans made to veterans are similar to those made for people with special needs except for slightly different eligibility criteria.
There has been a great demand for VA loans in the recent years. Most lenders of these loans like Flagship Financial do not require a down payment and thus veterans are able to afford this loan type for buying home or other eligible items. VA loans made through private lenders are guaranteed by the Department of Veterans Affairs as well, hence do not require mortgage insurance. In addition, no credit score is required in order to avail the benefits of VA loans. Note that the US Department of Veterans Affairs is not the direct lender of VA loans. As long as the guidelines are met, veterans can obtain these loans through private lenders of their choice. In the year 2015 alone, the VA has guaranteed more than 630K loans for people in need.
For those interested in learning more about VA loans, certain information about this program can make a huge difference in their financial life. Most members of the military and National Guard are eligible to apply for VA loans. Even spouses of military members can apply to as long as they meet the eligibility criteria. Active-duty members usually qualify after six months of their service whereas members of the National Guard and reservists will have to wait for six years before applying for the loan. However, these members if called for active duty become eligible after 181 days of service or after 90 days of service during war periods. In essence, reservists qualify under active duty immediately according to VA. Potential veterans or members who are eligible for VA loans are required to obtain a certificate of eligibility as well. This form is available online or at any city department.
Loan policies on VA loans may vary among lenders but most of the terms are in accordance with the Veterans Affairs Department. While some veterans rely solely on this loan, other veterans use favorable factors such as an acceptable credit standing and the ability to repay for obtaining their loan. The interest rate charged by these loans is normally equivalent to that charged nation-wide on these loans, and there is no surprise fees and hidden charges.