VA home loans from financial institutions like Bank of America are very popular, but are they the right choice to make? Many people have started switch their money to credit unions in a attempt to have lower financial fees and higher gains on interest in their savings account. Many military members use credit unions, such as the Navy Federal Credit Union, for VA mortgage.
VA mortgage loans began in 1944 under the Servicemen’s Readjustment Act. It was also known as GI Bill of Rights, this law provided a guaranteed home with no down payment. The luxury of getting a home loan without having to put thousands down is a huge bonus to current and prior military members.
Loans and mortgages under the VA are very standard, but other types of loans can vary greatly between banks and lenders. When choosing a financial institution, it is good to weigh the benefits between them and various loan types. Using Bank of America and the Navy Federal Credit Union as examples, we see similar policies and services other than VA;
Bank Of America
30-year fixed-rate mortgage
20-year fixed-rate mortgage
15-year fixed-rate mortgage
Other fixed-rate mortgages (10 and 25 Year Loans)
Jumbo loans(For higher than conventional thresholds)
Navy Federal Credit Union
15- and 30-year terms with fixed monthly payments
No Private Mortgage Insurance (PMI) on many conventional loans
Personal guidance from first call to closing, 7 days a week
Navy Federal servicing for the life of your loan
One difficult hurdle many vets face is qualifying for the VA mortgage. The standards associated with the loan are high, and those applying need to have a strong financial background. One requirement is the need to have 2 years of employment history. Many banks and credit unions will not allow a person to receive a VA home loan until they have been stable in a position for at least a 2 year time period. Each institution is different, and many are willing to work with individuals to help them get a home loan.
Rates associated with the loan will vary depending on the person applying’s credit score. The benefits of a VA loan are great, but does not guarantee a lower APR. Multiple financial institution provides the service, but ultimately it comes to personal preference.
Those wanting to research more about the VA loan process should visit the Veterans Administration Website for more information on loans and other VA services. Veteran benefits such as VGLI (Veterans Group Life Insurance), GI Bill, and other services are always available to those looking for assistance.
Affiliates - [The Daily]