VA Loans and Benefits Available to Veterans

Wow, it’s already March-less than two months for military members to stake their claim on the $8,000 first-time homebuyer tax credit.

The deadline is April 30, 2011 to enter into a binding sales contract. They must complete the sale by June 30, 2011.

The tax credit is one compelling reason veterans and active duty personnel should buy a home in 2011. In addition to utilizing the tax credit, veterans could save even more money if they choose the VA home mortgage program as their home loan option.

The VA Loan for Lebanon County Homebuyers

Since the U.S. Department of Veterans Affairs backs VA home loans, the program offers some excellent benefits. The most popular benefit is the no down payment option. That $8,000 tax credit could be used for renovation, appraisal fees, the VA funding fee or closing costs, instead of a large, burdensome down payment. However, those fees do not need to be paid upfront. They can be rolled to the monthly mortgage payments. Some VA borrowers, then, will choose to deposit that $8,000 into an interest-bearing savings account or CD.

In Lebanon County, eligible VA borrowers can get up to $417,000 towards the purchase of a home. The average cost for a home in the county according to bestplaces.net, is $149,190. VA borrowers will essentially have no up-front or out-of-pocket expenses if approved for the loan.

Other Pennsylvania VA Loan benefits include:

  • Inspection
  • No Monthly Private Mortgage Insurance (PMI)-Saves borrowers an extra $100 to $200 per month.
  • No Hidden Lender Fees-saves VA borrowers hundreds of dollars over the course of their loan.
  • Various Mortgage Plans
  • Refinancing Options Available
  • Less Strict Credit Requirements
  • Use Borrowed or Gifted Funds
  • Support from the VA on Loan-Related Issues

Applying for the VA Loan

Veterans, active duty military members, National Guard and Reserve members must meet certain eligibility requirements for acceptance into the VA loan program. No member with a dishonorable discharge will qualify for the loan. Spouses of deceased military members may apply and might be approved for the loan.

Veterans must show that they served 90 consecutive days during wartime and 181 consecutive days during peace. Applicants should sit down a talk with a VA loan counselor. They can help to make sure applicants have all the proper paperwork and information.

This guest post contributed by:

Matt Polsky
Mortgage Commentator
[email protected]
http://www.vamortgagecenter.com/

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