Clarksville VA Mortgage Guaranteed Home Loan Info

A VA mortgage loan is a loan guaranteed by the Department of Veterans Affairs, and requires low or no down payment.

The VA home loan program aims to help veterans finance the purchase of homes with favorable loan terms and at a rate of interest which is competitive with the rate charged on other type of mortgage home loans. For VA housing loan purposes, the expression "veteran" includes certain members of the Selected Reserve, active duty service personnel and certain categories of spouses.

With a VA mortgage, backed by the Department of Veterans Affairs, no down payment is needed in a purchase transaction.
180 days of active duty with enough entitlement to cover loan amount. Military may require to have more than 1 year before ETS date or re-enlistment statement. Others must have stable income. Combined long term debts should not exceed 40% of gross income. Compensating factors may allow for higher than the 40% ratio.
Term is up to 30 years fixed.

Advantage: no downpayment necessary, not so difficult to qualify, easier refinance options.

Guarantee.
VA guaranteed home mortgages are made by private lenders such as banks, savings and loan associations, or mortgage companies. To get a home loan, you apply to the lender. If the mortgage loan is approved, VA guarantees the loan when it is closed. The guaranty means the lender is protected against loss if you or a later owner fails to repay the loan.

Maximum VA mortgage.
There is no maximum VA mortgage (limited only by the reasonable value or the purchase price), however, lenders generally limit the maximum VA loan to $240,000 because most VA home loans are sold in the secondary market, which limits VA loans to that amount.

For a VA insured mortgage loan you could go, e.g. to the Fort Campbell Federal Credit Union, the Altra Federal Credit Union, the First Federal Savings Bank, the Old National or the Residential Mortgage Service in Clarksville tn, but before you do, be sure to get quotes, compare low rates, saving you on your monthly bills.

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