A mortgage loan insured under the Veterans Administration (VA) mortgage loan program. Veterans who served on active duty and were discharged under conditions other than dishonorable are eligible for VA loans benefits. This type of loan requires a Certificate of Eligibility from the VA.
U.S. military veterans who served on active duty and received a discharge other than dishonorable are eligible to participate in the Veterans Administration home loan program for the purchase of a primary personal residence. These loans are obtained through private lenders such as Meridian Mortgage Solutions. The VA guarantees a portion of the face amount to the lender against default which in turn helps the veteran lock in more favorable interest rates. The VA also provides assistance in the event the veteran experiences financial difficulties.
No down-payment terms are available for amounts up to $240,000. The closing costs on these mortgages are similar to those on other resident loans or may be a bit lower. No mortgage insurance premium is required of the veteran, a significant cost savings over the life of the mortgage. VA loans are assumable if the veteran chooses to sell the residence before the mortgage, and there is no penalty for early repayment of VA loans.
If the veteran chooses to build a new home rather than purchasing an existing one, having the VA inspect it during the construction process gives peace of mind through the agency’s receiving a guarantee of cooperation and a warranty from the home builder.
While the Veterans Administration is solidly behind these mortgages, there are things it cannot do. For example, it can’t provide legal services, it can’t guarantee the eventual value of the home, nor can it certify the home is free of defects. While the VA can’t force a builder to correct any defects, it can make sure an unsatisfactory builder won’t be able to participate in its programs in the future.
Before applying for a VA home mortgage, a veteran should have all necessary documentation in order. This can include tax documents, discharge papers, bankruptcy decrees and their settlements, divorce papers and their settlements, a list of employers and their contact information, and several others.
The veteran must also provide documentation of income in the form of regular employment income, bonus and commission income, money earned from part-time employment, retirement or Social Security payments, alimony, child support, and similar sources.
For more information on applying for a VA loan, contact Meridian Mortgage at 317-968-9500 or contact us online.
Meridian Mortgage Solutions is a subsidiary of Endeavor Capital, LLC Licensed through the Indiana Department of Finance and Insurance. License #17519 & 17520, NMLS#222524
Endeavor Capital, LLC and its DBA's are not acting on behalf of or at the direction of HUD/FA or the Federal government.
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