For many years one of the best mortgage program available has been administered by the Veterans Administration. For those who qualify, VA-backed financing can be extremely attractive.
The VA program basically allows a qualified individual to purchase a home with no money down and at a reduced rate to interest. While there is no official limit to the size of a VA loan, as a matter of practice loans of up to $100,000 are commonly made.
VA loans are available for those with military service and for certain other individuals, such as those who have worked in the Public Health Service In most cases individuals are required to have 181 days of continous active duty.
To find out if you qualify under a VA program you will need Form DD214; which can be obtained by writing to the National Personal Records Center, 9700 Page Blvd., St. Louis, Mo. 63132. Include your name, serial number, Social Security number, date of birth, day you entered the service, and the date and place you left service. In addition, state the unit you were with when you left and the type of discharge you received.
The VA will not give a loan for any house. The property must be appraised by The VA. The cost f obtained by calling 275-1356 locally. The VA appraisal will assure that the property has some level of minimum worth and that it meets VA standards for construction and condition. If the property does not meet VA standards, the agency will only back a loan application if repairs are first made by the seller.
While the FHA program is an insurance plan, the VA program is a loan guarantee. For this reason there is no insurance premium associated with a VA-backed loan. On a $60,000 loan a VA loan would cost $22.03 less than an FHA mortgage with a 1/2 percent insurance premium. Over the term of a 30-year loan this is a difference of $7,930.80.