Online VA Home Loan

An online VA home loan can be applied for through an Internet website that allows veterans and their spouses to qualify to purchase a residence with zero down. These contracts are guaranteed by the Veterans Administration and are available to all veterans through participating lenders or can be made directly through the Department of Veteran Affairs for those who don't qualify under regular lending standards. There are limited funds made available for direct loans, and once a veteran qualifies through a traditional lending institution, he must reapply for the online VA home loan in order to receive the lender's funds.

Lenders love to issue contracts to eligible veterans because online VA home loans guarantee that the veteran borrower will repay the lender. If the borrower defaults, then the VA will pay the loan on the borrower's behalf. However, in a case like this, the defaulter will become ineligible for another of these contracts until their original money is paid back to the VA. The contract has a borrowing maximum that is determined by the geographical location and the area housing market. A unique aspect to online VA home loans is that they can be used over and over again, for as many properties as desired up to the limit.

For example, if a borrower sells his property which is financed through an online VA home loan, and pays off the remaining balance, he can buy a different property up to his limit. If a borrower wishes to purchase two separate properties with their combined purchase prices totaling not more that the limit, he is free to do so. This enables a veteran to have flexibility in purchase and the ability to utilize the program for the rest of his life. Online VA home loans also allow the borrower to receive approval with no money down. Traditional loans require a 10%-20% down payment.

The borrower also has the option to have the closing costs, which are the buyer's responsibility, to be wrapped into the mortgage. This allows for no out of pocket expenses during the entire process. An online VA home loan can be approved 100% through the telecommunications method. Accounts and information can be verified automatically, and a signature can be faxed. As believers, we have a greater responsibility to handle our money wisely, including paying back what we borrow. Psalm 37:21 cautions us, "The wicked borroweth, and payeth not again: but the righteous sheweth mercy, and giveth." Good stewardship means not signing up for payments beyond our ability to pay.

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