First, A VA mortgage does not include what are called “no document” or “no income verification” loans. The VA does also does not guarantee interest-only loans or home equity lines of credit. Another restriction that makes VA home loans different from the more standard loan fare is the fact that you do not have cash back options.

At the same time, VA loans do offer a form of cash-out refinancing. With this type of loan, the veteran is authorized to borrow up to 90 percent of the total value of their home. To compensate for the lack of availability for home equity lines of credit or HELOCs, you can obtain home equity loans through the VA home loan program. The borrower may actually obtain a full 100 percent of their home’s equity if they wish to do so.

These time periods are based upon whether you served during wartime or peacetime. For those veterans who served during wartime, the timeframe for eligibility is 90 days or more. If the veteran served during peacetime, the amount of days for eligibility is 181 continuous days or more.

Specific periods of wartime and peacetime that are covered under the provision of the VA’s General Rule for Eligibility, include the following periods of time:

Wartime – World War II: 9/16/40-7/25/47; Korean conflict: 6/27/50-1/31/55; Vietnam era: 8/5/64-5/7/75; Persian Gulf War: 8/2/90 – undetermined

Peacetime – Post-World War II period: 7/26/47-6/26/50; Post-Korean period
2/1/55-8/4/64; Post-Vietnam period: 5/8/75-8/1/90

First, you need a contract to purchase. At this point, the veteran should find a home and discuss the purchase of the property with the seller or associated agent. Then he will sign the purchase contract once a VA loan has been approved.

Second, you should fill out a loan application. The borrower must choose a lender, present a Certificate of Eligibility, and fill out a loan application. Then the lender will process the credit information and contact the VA about assigning an appraiser to find out the reasonable value of the home.

Third, a decision must be made about the loan. Once a value has been accepted by everyone involved, the lender qualifies the borrower and the loan can be approved. It is the lender’s responsibility to make this decision.

Fourth, the loan is closed. Now, the veteran can deal with the closing of the loan. At this point, the mortgage and not should be signed, as well as any other finalizing paperwork. All of the terms and conditions of the loan including payment schedule will be outlined by the lender or closing attorney.

Take a look at three types of VA mortgage loans and decide which one meshes with your circumstances the best.

A fixed rate loan. Of course, these are the kind of loans that have stable interest rates that will not change over time. They are the best choice for people who are intending to remain in their residence for a extended period. They may also prefer a set payment since it will better suit their budgetary and monetary constraints.

An adjustable rate loan. With these loans, the interest rate starts out at a fixed number for certain period. Afterwards, when the period expires, the rate amount will fluctuate with the changes in the market. This is the preferred option for those who don’t plan to stay in their home for much longer than the fixed period. The reason for this is that adjustable rates will start out at lower levels than fixed rate loans, which saves the borrower money.

Interest only loans. You can get lower payments at the start of your loan term while paying larger ones later in the term. This is used by people who believe they will have sufficient future income to pay the higher rates.

Take a look at three types of VA mortgage loans and decide which one meshes with your circumstances the best.

A fixed rate loan. Of course, these are the kind of loans that have stable interest rates that will not change over time. They are the best choice for people who are intending to remain in their residence for a extended period. They may also prefer a set payment since it will better suit their budgetary and monetary constraints.

An adjustable rate loan. With these loans, the interest rate starts out at a fixed number for certain period. Afterwards, when the period expires, the rate amount will fluctuate with the changes in the market. This is the preferred option for those who don’t plan to stay in their home for much longer than the fixed period. The reason for this is that adjustable rates will start out at lower levels than fixed rate loans, which saves the borrower money.

Interest only loans. You can get lower payments at the start of your loan term while paying larger ones later in the term. This is used by people who believe they will have sufficient future income to pay the higher rates.