With the current economic situation, it is not easy for individuals to find mortgages, and especially so for military veterans. However, with the introduction of veteran home loans, servicemen can now own their own homes. Basically, these are loans given to retired military personnel so that they can be able to buy homes.

There are some conditions which have been put in place for those who would like to apply for the loan. For example, it is a requirement that one must have served in the army for a given period in historic wars. Such wars include; the Vietnam war, World War 11, Gulf war, Korean War and the 24-month war. In these wars, the individual must have been there for a minimum of 90 successive days. If one was in the National Guard, then they must have served for 181 days or more.

If an individual meets the above stipulations, then he/she can qualify for the loan. The government will therefore go ahead to check on these factors before issuing one with a certificate of eligibility. Lenders will however need more than just this certificate. One has to prove that they are in a position to repay the full amount together with the interest once given the loan. This is why the other requirement is a credit report. From this, the lender is able to determine whether one has unpaid debts. They will also check on your source of income and see whether it is sufficient enough to support the program.

Those who meet the above conditions are more likely to benefit more from the veteran home loan as compared to the other types. These loans do not need a down payment as it is with the other types of mortgages. Also the guarantor in this case is the federal government.

With the loan, one can build a new home, buy a finished one or even use the money in fitting installations. This therefore means that one is at liberty to use it as they want so long as it is related with owning a home. You can even opt to purchase a manufactured home of your choice.

One has to just identify the home they want to buy together with the best lender in their opinion. A real estate agent will however be needed to sign a purchase agreement which will be presented to the lender. This document together with the purchase agreement means that the loan can now be processed.

With a purchase agreement and certificate of eligibility, all is good to go. Just go to your lender and present the documents together with bank statements. It will be processed and then closed.

Veterans living on a low budget can benefit more from this type of loan because of the policies surrounding it. There is no monthly insurance fee needed and the interest rates are lower than those in the market. One should therefore apply dreaming of a owning a home.

Read more about Requirements For Veteran Home Loans.