Although the government has put into action specials programs with the purpose of helping Canadian military family purchase new homes, the inadequate advertising has led to the appearance of many misconceptions regarding the loan program. The common mistake that is encountered is the fact that many people take literally what is being said in online environments, instead of discussing with a qualified mortgage broker. The reason for which so many people get mislead is due to the fact that others like to think that they are true experts and that is the cause of many rumors and the fact is that information travels fast. So what is and what isn’t true.
You are limited to one loan
Besides the fact that the veteran or active duty military can apply for the loan program without having to pay any down payment, the loan program can be accessed again and again. This is due to the fact that veterans enjoy what is called entitlement and which can be defined as the promise that the veteran makes that he will refund the sum of money borrowed. If the veteran qualifies for the loan, then he enjoys two levels of entitlement. This basically means that in case there is any money left from the purchase of the house, then the borrower is able to hold on to the sum of money and rent the house. With the profits thus gained, he is given the possibility of applying again for the loan.
The more credit cards, the merrier
A false conception is represented by the fact that the borrower has to own multiple credit cards in order to demonstrate his interaction with debt. This can be explained by the fact that mortgage brokers and other lenders often advise clients to use regularly at least one credit card. Basically the borrower has to be able to prove creditworthiness, which means that the lender will evaluate the chances of you not paying back the loan. The credit score is the mirror of your credit behavior. Actually all it takes is a secured credit card opened by making a deposit and you will have tom use it later on I order to make purchases.
Surviving spouses do not qualify
Of course they do. The reality is that only spouses of deceased or missing soldiers can apply for the loan. This is equally true in case the spouse of a deceased soldier decides to move on with her life and remarry. The only catch is that the death or the injury of the soldier had to be caused during his military service. The competent authorities are obligated to investigate the death of the person and only after the investigation is finalized will the wife be able to submit the necessary paperwork.
To conclude, it is better to get the advice of a mortgage broker and not listen to everything you hear.