Military members and veterans are offered several benefits as a result of their military service. VA Home Loans allow military veterans to obtain a mortgage loan with little to no down payment, and lower loan origination fees (2.15% with no down payment, 1.25% with a 10% down payment on a first-time VA Home Loan) than a conventional home loan. A VA Home Loan comes with many benefits that aren't offered with conventional home loans. The current state of the economy is improving, but many home loan recipients are still finding themselves unable to cover mortgage payments. Every three months, more than 250,000 families enter into the foreclosure process in the United States. If you purchased your home with a VA Home Loan and are having difficulty making payments, you have options to avoid foreclosure.
VA Can Negotiate With the Lender
VA does not issue mortgage loans - the VA Home Loan process only guarantees a portion of the mortgage loan in the event the borrower cannot pay. However, VA will negotiate with lenders on behalf of borrowers in an attempt to help borrowers avoid foreclosure. VA has dedicated staff members that act as liaisons between borrowers and lenders to help obtain reduced payment amounts, modified loan terms and alternate repayment options to help veterans stay in their homes and protect their credit. Veterans may call to request assistance with mortgage issues and other VA benefit questions.
Mortgage Lenders May be More Willing to Work With VA Home Loan Recipients
Nine out of ten VA Home Loans are written with no down payment. Despite this fact, VA Home Loans have the lowest foreclosure rates of any type of home loan. This is due in part to VA's dedication in helping keep veterans in their homes. It is also due in part to mortgage lenders who are willing to work with VA and VA Home Loan borrowers to keep families in their homes. If you are the recipient of a VA Home Loan and find yourself in financial difficulty, don't wait to contact your mortgage lender for assistance. Taking a proactive approach will keep you in your home and avoid a hit to your credit rating. Your mortgage lender will most likely be willing to work directly with you to help you renegotiate the terms of your mortgage and adjust your payments. If you are met with resistance from your mortgage lender, you should contact VA immediately for assistance from a veterans home loan counselor.
Share14 June 2016
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