VA home loan useful, but watch for snags

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VA home loan useful, but watch for snags
By Rick Maze and Michelle Tan - Staff writer
Posted : Sunday Dec 20, 2009 10:13:22 EST

For eligible service members and veterans, the Veterans Affairs Department’s home loan guarantee program can be a curse or blessing in today’s housing market. Among the advantages:

• It is among the few mortgage programs now available that does not require a down payment.

• In most locations, lenders will allow purchases of a home worth up to $417,000 without a down payment — and more than $1 million in some high-cost areas.

• Credit underwriting is a little easier with VA loans than with other mortgages. A buyer’s credit scores don’t have to be as high, and loans are possible with as few as six months of work history — not the minimum two years required for most mortgages.

• An inspection of the home is required to ensure it is safe and livable, which provides extra protection for first-time buyers.


Rest of article at: http://www.armytimes.com/news/2009/12/army_military_housing_121909w/