{"id":815,"date":"2025-07-21T13:47:57","date_gmt":"2025-07-21T10:47:57","guid":{"rendered":"https:\/\/site.alustell.ru\/?page_id=815"},"modified":"2025-07-26T14:25:58","modified_gmt":"2025-07-26T11:25:58","slug":"zczczc-2","status":"publish","type":"page","link":"https:\/\/site.alustell.ru\/?page_id=815","title":{"rendered":"VA loans: Benefits, eligibility requirements and more"},"content":{"rendered":"
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VA Mortgages: Accessible Homeownership for Military Affiliates<\/h2>\n

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VA loans represent a crucial mortgage option, facilitating affordable homeownership for qualifying current and former military personnel.1<\/sup><\/span> Prior to pursuing a VA loan, it is essential to grasp the operational mechanics of this distinctive government-backed financing, including its inherent advantages, prerequisites, and how its interest rates and associated costs compare to alternative borrowing avenues.<\/p>\n

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How VA Loans Operate<\/h3>\n

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VA mortgages are categorized as <\/span>non-conforming loans<\/span><\/b> because they do not align with, or “conform” to, the directives established by government-sponsored enterprises such as Fannie Mae and Freddie Mac.2<\/sup><\/span> While the VA itself does not originate VA loans, it holds the authority to determine both who is eligible for them and which lenders are authorized to issue them.3<\/sup><\/span><\/p>\n

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Numerous types of VA loans exist, and they present a reduced risk to lenders due to the backing provided by a government agency.4<\/sup><\/span> This governmental support enables lenders to implement more flexible borrowing criteria for VA loans, even for applicants with lower credit scores. Furthermore, VA loans typically offer a more competitive interest rate than conventional loans (which are more prevalent and supported by private lenders, not the government), and they include the compelling option to acquire a home without any down payment.5<\/sup><\/span><\/p>\n

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VA Loan Limits Explained<\/h3>\n

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The VA does not impose a ceiling on the amount you can borrow, except in situations where your entitlement is impacted. However, when loan limits<\/b> do apply to a VA loan, they are generally based on the conventional loan limit. For 2025, this stands at $806,500 for one-unit properties located in non-high-cost regions of the continental U.S. Additionally, lenders frequently use these conventional loan limits as the minimum threshold for VA jumbo loans.<\/p>\n

Certain high-cost areas feature elevated borrowing ceilings. Should your financing needs exceed this amount, you can investigate the possibility of a <\/span>VA jumbo loan<\/span><\/b>, which notably requires no down payment and may provide a more favorable rate than a standard jumbo loan.6<\/sup><\/span><\/p>\n

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Discover Your Qualification Potential<\/h3>\n

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  • Acquire a Home<\/b><\/li>\n
  • Refinance an Existing Home<\/b><\/li>\n
  • Opt for a Cash-Out Refinance<\/b><\/li>\n
  • Explore My Diverse Options<\/b><\/li>\n<\/ul>\n
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    Deciphering the Mechanics of VA Loans<\/h3>\n

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    VA mortgages are classified as non-conforming loans<\/b> due to their divergence from the established guidelines of government-sponsored enterprises like Fannie Mae and Freddie Mac. The VA does not originate these loans; instead, it sets the qualification parameters for borrowers and designates the lenders permitted to issue them.7<\/sup><\/span><\/p>\n

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    A variety of VA loan types are available, and they mitigate risk for lenders because they possess the backing of a government agency.8<\/sup><\/span> This endorsement empowers lenders to apply more lenient borrowing prerequisites for VA loans, even for individuals with a lower credit score.<\/p>\n

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    Moreover, VA loans typically provide a lower interest rate compared to conventional loans (which are more common and supported by private entities, not the government), and they offer the advantage of purchasing a home with no requirement for a down payment.9<\/sup><\/span><\/p>\n

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    VA Loan Limitations<\/h3>\n

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    The VA does not restrict the amount you can finance, except in instances where your entitlement has been previously utilized. Nevertheless, when loan limits<\/b> are pertinent to a VA loan, they are usually benchmarked against the conventional loan limit. For the year 2025, this limit is $806,500 for single-unit properties in standard-cost areas across the continental U.S. Furthermore, lenders often adopt the conventional loan limits as the floor for VA jumbo loans.<\/p>\n

    Specific high-cost localities benefit from increased borrowing thresholds. If your borrowing requirements surpass these figures, you can consider a <\/span>VA jumbo loan<\/span><\/b>, which does not necessitate a down payment and may feature a more competitive interest rate than a typical jumbo loan.10<\/sup><\/span><\/p>\n

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    Prevalent Categories of VA Loans<\/h3>\n

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    Eligible borrowers have a selection of VA loan options<\/b> when seeking to finance or refinance a home:<\/p>\n\n\n\n\n\n\n\n\n\n\n
    VA Loan Type<\/td>\nDescription<\/td>\n<\/tr>\n<\/thead>\n
    VA Home Purchase Loan<\/b><\/td>\nA standard mortgage product secured by the VA.<\/td>\n<\/tr>\n
    VA Jumbo Loan<\/b><\/td>\nA VA loan specifically designed for amounts that exceed conventional conforming loan limits.<\/td>\n<\/tr>\n
    VA Renovation Loan<\/b><\/td>\nA VA loan that covers both the acquisition of a property and the expenses associated with its renovation (Note: Rocket Mortgage\u00ae does not provide this loan type).<\/td>\n<\/tr>\n
    VA Cash-Out Refinance<\/b><\/td>\nA VA loan allowing the conversion of a home’s equity into liquid funds.<\/td>\n<\/tr>\n
    VA Rate\/Term Refinance<\/b><\/td>\nA financing solution enabling eligible clients not currently holding a VA loan to refinance with the objective of lowering their interest rate and\/or modifying the repayment term of their mortgage.<\/td>\n<\/tr>\n
    VA Interest Rate Reduction Refinance Loan (IRRRL)<\/b><\/td>\nAlso referred to as a VA Streamline, this is a refinancing option for individuals aiming to reduce their monthly payment and\/or interest rate on an existing VA loan (characterized by less documentation and a lower VA funding fee).<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n
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    Who Qualifies for a VA Loan?<\/h3>\n

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    VA loans are typically available to the following groups of individuals:<\/p>\n

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    • Veterans<\/li>\n
    • Active Service Members<\/li>\n
    • Currently or Formerly Activated National Guard Members<\/li>\n
    • Surviving Spouses<\/li>\n
    • Reserve Members<\/li>\n<\/ul>\n

      Additionally, you must satisfy at least one of the following criteria for VA loan eligibility:<\/p>\n

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      • You have served 181 days of active duty during peacetime.11<\/sup><\/span>\n
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      • You have served 90 consecutive days of active duty during wartime.<\/li>\n
      • You have accumulated over 6 years of service with the National Guard or the Reserves, or 90 days under Title 32 with a minimum of 30 consecutive days.<\/li>\n
      • You are the spouse of a service member who perished in the line of duty or as a consequence of a service-connected disability.12<\/sup><\/span> Generally, remarriage disqualifies you, though specific exceptions exist. There are also other requirements for a spouse securing a VA loan<\/b>.\n
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        The definitions of wartime or peacetime are contingent upon your period of service. For more comprehensive details, consult the VA\u2019s eligibility guidelines<\/b>.<\/p>\n

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        What Is a Certificate of Eligibility (COE)?<\/h3>\n

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        A <\/span>Certificate of Eligibility (COE)<\/span><\/b> is an official document presented to your mortgage lender, confirming your qualification for a VA home loan.13<\/sup><\/span> To obtain a COE, you are required to submit proof of your military service. The specific documentation needed varies depending on whether you are an active-duty military member, a veteran, or another category of VA loan-eligible individual.<\/p>\n

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        You can request a COE<\/b> directly on the VA website or seek assistance from your lender in securing it.<\/p>\n

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        Take the Initial Step Towards the Ideal Mortgage<\/h3>\n

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        Apply online for expert recommendations with real interest rates and payments.<\/b><\/p>\n

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        VA Loan Requirements<\/h3>\n

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        Once your VA loan eligibility has been verified, your income, assets, and credit profile must undergo review. The property you intend to purchase must also adhere to certain criteria. Requirements diverge for any loans that your lender classifies as a VA jumbo loan.<\/p>\n

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        Property Type<\/h4>\n

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        To comply with <\/span>VA loan occupancy requirements<\/span><\/b>, the property you acquire must serve as your primary residence within 60 days of the purchase.14<\/sup><\/span> A VA loan cannot be utilized for a vacation or <\/span>investment property<\/span><\/b>, but it can be used to purchase a one- to four-family home, provided the eligible member occupies one unit as their primary residence.15<\/sup><\/span><\/p>\n

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        VA loans can also be applied to condominiums and manufactured homes, although not all VA lenders will finance loans for these property types.16<\/sup><\/span> Rocket Mortgage, for instance, offers financing for manufactured homes constructed on or after June 15, 1976, that are permanently affixed to the land (classified as real property) and bear a HUD tag.17<\/sup><\/span><\/p>\n

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        Credit Score<\/h4>\n

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        The VA itself does not mandate a specific minimum <\/span>credit score for VA loans<\/span><\/b>; thus, the credit requirement varies by individual lender.18<\/sup><\/span> For example, the minimum median credit score for a VA loan through Rocket Mortgage is 580.19<\/sup><\/span><\/p>\n

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        Income<\/h4>\n

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        Your lender will assess your debt-to-income ratio (DTI)<\/b> to gauge your capacity to repay the loan. Your DTI illustrates the proportion of your gross monthly income allocated to debt payments.20<\/sup><\/span> While the VA does not impose limits on your DTI, your specific lender might.<\/p>\n

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        At Rocket Mortgage, the maximum DTI often fluctuates based on factors such as your credit score and the amount of your down payment or equity.21<\/sup><\/span><\/p>\n

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        Down Payment<\/h4>\n

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        VA loans stand out as one of the few prominent loan options that typically do not necessitate a down payment<\/b>. Your lender may have particular stipulations for a no-down-payment VA loan.<\/p>\n

        For instance, they might require a higher credit score if your down payment is less than 10%.<\/p>\n

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        Secure Savings on a VA Loan Today!<\/h3>\n

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        Lock in your low interest rate with a fast, online approval.<\/b><\/p>\n

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        How to Apply for a VA Loan<\/h3>\n

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        The process of applying for a VA loan closely resembles that of any other mortgage, with a few notable distinctions.<\/p>\n

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        1. Obtain a Certificate of Eligibility (COE)\n

          You will need documentation of your military service to establish VA loan eligibility. Inform your lender early in the process that you require your Certificate of Eligibility so they can assist you in acquiring it.<\/li>\n

        2. Apply for Approval\n

          Seek preapproval early on. This will furnish you with a benchmark for determining your affordability. Furthermore, when you submit an offer on a home, sellers often consider offers more seriously if accompanied by a preapproval letter.<\/li>\n

        3. Shop for a Home and Submit a Purchase Offer\n

          Locating a home with a VA loan is similar to finding a home with any other loan option. Whatever property you choose must adhere to the VA\u2019s Minimum Property Requirements (MPRs) to ensure the residence is safe, structurally sound, and sanitary.22<\/p>\n

          Once you identify a suitable home within your price range, submit an offer<\/b> to purchase it. The seller may accept, reject, or make a counteroffer. Upon acceptance of the offer, a <\/span>real estate agent<\/span><\/b> or attorney will draft a sales contract, sometimes referred to as a purchase agreement.23<\/sup><\/span><\/p>\n

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        4. Undergo VA Appraisal and Underwriting\n

          Underwriters from your chosen lender will evaluate your financial standing to confirm your qualification for a VA loan. The VA will also mandate an appraisal before approving the loan. VA appraisals are more comprehensive than appraisals for homes financed with a conventional loan.<\/p>\n

          During a VA appraisal, the appraiser will verify that the home meets the VA\u2019s MPRs and is sanitary, structurally sound, and move-in ready with only minor repairs necessary.24<\/sup><\/span><\/p>\n

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        5. Finalize Your New Home Purchase\n

          Once the VA appraiser confirms the safety and soundness of your new home, it\u2019s time to sign for your new property, secure your loan, and receive the keys to your new residence.<\/li>\n<\/ol>\n

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          Costs Associated with a VA Loan<\/h3>\n

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          “No down payment” does not equate to “zero cost.” In addition to VA loan closing costs<\/b>, you will need to prepare for other expenses \u2013 even if you are putting 0% down and are exempt from mortgage insurance. These costs encompass the funding fee and the reserve funds requirement.<\/p>\n

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          Funding Fee<\/h4>\n

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          Most individuals obtaining a VA loan are required to pay a funding fee, which helps offset the cost to taxpayers.25<\/sup><\/span> The VA funding fee<\/b> typically ranges from 1.25% to 3.3% of your loan amount. If you previously had a VA loan and are pursuing a VA Streamline, the funding fee is 0.5%.26<\/sup><\/span><\/p>\n

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          The cost of this fee is determined by your type of service, the size of your down payment or amount of equity, whether it is your first time obtaining a VA loan, and whether you are purchasing or refinancing the property. Surviving spouses, veterans receiving disability compensation, and Purple Heart recipients serving in an active-duty capacity are exempted from funding fees.27<\/sup><\/span><\/p>\n

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          In most scenarios, if you do not have the funds available upfront, the VA funding fee can be incorporated into your mortgage.28<\/sup><\/span><\/p>\n

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          Reserve Funds<\/h4>\n

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          The majority of loans mandate that the home buyer possess additional funds in their bank account that are not allocated for upfront costs. This ensures your ability to make payments once your loan closes.<\/p>\n

          The precise amount of leftover funds required is determined by the cost of your mortgage payment, including principal, interest, taxes, and insurance. Although not always mandatory, it is generally prudent to demonstrate reserves equivalent to 2 months of mortgage payments.<\/p>\n

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          Secure Savings on a VA Loan Today!<\/h3>\n

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          Lock in your low interest rate with a fast, online approval.<\/b><\/p>\n

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          Benefits of a VA Loan<\/h3>\n

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          VA loans offer numerous advantages over conventional mortgages<\/b>. These include a potentially lower interest rate, the absence of down payment and mortgage insurance requirements, more flexible credit criteria, and additional benefits for disabled veterans.<\/p>\n

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          Lower Interest Rates<\/h4>\n

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          Because they are backed by the government and present a reduced risk to lenders and investors, VA loans typically feature <\/span>lower interest rates<\/span><\/b> than conventional loans \u2013 particularly beneficial for borrowers with credit challenges.29<\/sup><\/span><\/p>\n

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          No Down Payment Requirement<\/h4>\n

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          VA loans are one of only two major mortgage options that generally do not require a down payment.30<\/sup><\/span> This translates to needing less capital upfront, allowing you to save the extra funds or allocate them towards home furnishings and projects.<\/p>\n

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          No Private Mortgage Insurance (PMI)<\/h4>\n

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          VA loans do not necessitate private mortgage insurance (PMI). PMI is mortgage insurance on conventional loans that lenders typically require if your down payment is less than 20%.31<\/sup><\/span> Not having to pay PMI can save you between 0.1% \u2013 2% of your remaining loan balance annually, a cost you would otherwise incur until you reach 20% equity if your initial down payment was below that threshold.<\/p>\n

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          Lenient Borrowing Requirements<\/h4>\n

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          VA loans permit qualification with a higher DTI than any mortgage program offered by major mortgage investors. If your credit score is 620 or above, the DTI needed to qualify can vary based on factors such as your credit score and the down payment amount.<\/p>\n

          If your score is at least 580 but below 620, your mortgage payment cannot exceed 38% of your gross monthly income. Furthermore, your DTI cannot be higher than 45%.<\/p>\n

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          100% Loan-to-Equity Value When Refinancing<\/h4>\n

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          In most instances, you do not require any equity to refinance your VA loan into a lower rate or to extract cash. In fact, with a VA Streamline Loan<\/b>, you can refinance up to 120% of your home\u2019s value for the purpose of altering your repayment term or reducing your interest rate. This implies that you can refinance even if the outstanding balance on your home exceeds its current worth.<\/p>\n

          However, to achieve this through Rocket Mortgage, your median credit score must be at least 620. Otherwise, you can borrow up to 90% of your home equity if your median score is 580 or higher.<\/p>\n

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          Ability to Utilize a VA Loan Multiple Times<\/h4>\n

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          A VA loan is not a single-use benefit.32<\/sup><\/span><\/p>\n

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          You may be eligible for an additional VA loan in the future if you sell your initial home and fully repay the original loan, or if you sell the property and another home buyer who meets the VA\u2019s requirements agrees to assume the loan.<\/p>\n

          You also have the option to fully repay the loan amount and secure another VA loan to purchase an additional property.<\/p>\n

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          The Concluding Point: VA Loans Offer Benefits for the Military Community<\/h3>\n

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          A VA loan represents a significant benefit accessible to many individuals who have served in the military or are currently serving.33<\/sup><\/span> If you qualify for a VA loan, you can secure an excellent interest rate with no money down \u2013 leading to upfront savings and an overall more affordable home buying option than you would likely find with a conventional loan program.<\/p>\n

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          If you feel prepared, commence an application for a VA loan<\/b> with Rocket Mortgage today!<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

              VA Mortgages: Accessible Homeownership for Military Affiliates   VA loans represent a crucial mortgage option, facilitating affordable homeownership for qualifying current and former military personnel.1 Prior to pursuing a VA loan, it is essential to grasp the operational mechanics of this distinctive government-backed financing, including its inherent advantages, prerequisites, and how its interest […]<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"footnotes":""},"class_list":["post-815","page","type-page","status-publish","hentry"],"_links":{"self":[{"href":"https:\/\/site.alustell.ru\/index.php?rest_route=\/wp\/v2\/pages\/815","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/site.alustell.ru\/index.php?rest_route=\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/site.alustell.ru\/index.php?rest_route=\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/site.alustell.ru\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/site.alustell.ru\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=815"}],"version-history":[{"count":81,"href":"https:\/\/site.alustell.ru\/index.php?rest_route=\/wp\/v2\/pages\/815\/revisions"}],"predecessor-version":[{"id":826,"href":"https:\/\/site.alustell.ru\/index.php?rest_route=\/wp\/v2\/pages\/815\/revisions\/826"}],"wp:attachment":[{"href":"https:\/\/site.alustell.ru\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=815"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}