Author: Ryann Cairns
Buying a home is a major financial commitment. A home of your own is one of the biggest financial investments most people will ever make, and a home can be an excellent investment. Finding the right home mortgage loan to make your American Dream come true is one of the biggest challenges facing any potential home buyer.
The VA ARM program is designed to help those who have served our country in the armed forces become home owners under favorable loan and down payment conditions. The Veteran's Administration (VA) ARM program was established to assist veterans with mortgage loans at better interest rates and favorable loan and down payment terms.
As with any lender, the interest rate on a VA ARM loan will vary along with the underlying interest rates. The first step in the VA ARM application process is to visit a mortgage lender who participates in the VA program. The home buyer will need to complete a Certificate of Eligibility to prove that he or she is eligible for a VA ARM loan.
The mortgage lender can get a Certificate of Eligibility for the borrower, or the borrower can obtain it themselves directly from the VA or via the VA web site. Since the VA home loan program is designed for veterans, the home buyer will be required to supply suitable proof of military service.
If the applicant is still on active duty, he or she can supply an original statement of service. If the applicant is no longer on active duty, he or she will need to provide a discharge certificate. In order to apply for a VA ARM loan, the potential home buyer will shop for a home, find a mortgage lender and present the lender with a Certificate of Eligibility in order to complete the mortgage loan application. The mortgage lender will then make a determination on the loan application based on the borrower's credit history and financial situation.
After the closing of the mortgage, the loan will be sent to the VA for guaranty and the paperwork will be returned to the new home owner. There are enormous benefits inherent in the VA ARM program, including lower interest rates. In addition, one of the most important advantages of the VA ARM compared to conventional mortgages is that there is typically no down payment required on a VA home loan. In addition, the VA will inform the potential home buyer of the reasonable value of their prospective home.
Closing costs on VA home loans are often lower than closing costs on competing mortgage vehicles. In addition, no mortgage insurance premiums are due on a VA home loan, and the loan may be prepaid at any time without penalty. The VA ARM program is an excellent way for veterans to afford the home they need. The favorable terms and great interest rates make the VA ARM program one of the most attractive home mortgage loan deals around.
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