St. Louis Real Estate Tip of the Week: SECURING A VA LOAN

Are you a veteran?  Do you want to purchase a home?  Then, why not consider using the VA loan process?  The loans were created to assist individuals who might not have been able to secure a mortgage due to their financial situation or any other type of economic woes they're facing.  These loans have several advantages and are available to eligible candidates who are either currently active in the armed forces, veterans, or spouses of veterans.

These loans don’t require large down payments; rather, some qualified applicants won't even have to put any money down on the home, and can obtain 100 percent financing. You can also avoid insurance premiums, penalty fees, as well as high interest rates.

In many cases, it’s easier to get a VA loan with a less-than-favorable credit score, than a bank loan. In fact, Veterans Affairs does not require a minimum credit score, although lenders may have their own requirements.

Surprisingly, many applicants do not take advantage of the VA loan system because they are not sure if they qualify or don't know how to start the process. Most military members, veterans, reservists and National Guard members are eligible for VA loans as well, and those who are interested should explore their options.

 

Here is a snapshot of who qualifies for a VA Loan:

• According to the VA Home Loan Center, those who served in the National Guard or in the Reserves have a minimum six year duty requirement before they are able to obtain a loan. (If they were discharged due to an injury, there is potential that they can still be considered for loan options.)
• In order for retired veterans to qualify for a loan, they will have had to serve at least 181 days or 90 days during the Gulf War and must have an honorable discharge from the service. (If the individual served less than 90 days, they could potentially be considered for a loan if they were discharged due to a service-related disability.)
• If an individual is a surviving spouse who remarries after the age of 57 and on or after December 16, 2003, they will be considered for a VA home loan. Other factors that would make someone qualified for obtaining a loan is if they are a spouse of a veteran who died in the service or from a service-related disability who has not remarried yet. In addition, spouses of missing soldiers or prisoners of war qualify for acquiring these loans.

 

About the Process:

The process of obtaining a VA loan is fairly simple; however there are a few things veterans should know first before beginning the process.

 

• They'll be looking in particular at the last 12 months to be sure you've made your payments on time.
• Some lenders require a minimum credit score, which varies by lender.
• They'll also want to make sure you can pay your mortgage, and also have enough income to pay your other bills as well.

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Beverly Taki is a Missouri-licensed real estate broker who has successfully represented clients for 25 years.  She is a broker salesperson at Keller Williams Realty St Louis. 10936 Manchester Road, St. Louis, MO   63122. Beverly has earned a certificate in dispute resolution from Pepperdine University, specializing in negotiation and mediation. Taki can be reached at beverlytaki@kw.com or 314-677-6366.  Her website is beverlytakistlouis.com. Her blog is http://www.realestatestlou.com.