Subscribe

Who Qualifies for VA Home Loans

by | Veterans

veterans home loansFor many veterans and their families, buying a home can be a difficult experience. Many veterans have little patience for the drawn out process of finding a loan, and others have not always had the best luck with credit. Fortunately, Veterans Affairs (VA) can help. Here is how veterans may find out if they qualify for a loan through the VA.

What Is A VA Home Loan?

The VA offers two types of loans. The Purchase Loan involves the VA helping the veteran to purchase a home at a competitive rate, especially if the veteran has trouble finding financing through other means. The Cash-Out Refinance Loan helps veterans to take cash out of their home equity in order to pay off debt, pay for school, make home improvements, or for other reasons. This loan may also be used to help the veteran refinance a non-VA loan into a VA loan.

 

How Does It Work?

The VA does not become directly involved in the process. It simply backs the loan as it is handled by private lenders. The VA only guarantees a portion of the loan. If a veteran can no longer make payments, then the VA will cover any losses that may occur. Essentially, the VA acts as insurance for the loan.

 

What Are The Advantages Of A VA Home Loan?

By guaranteeing the home loan, lenders are able to provide several benefits:

  • No down payments as long as the sales price does not exceed the appraised value.
  • No private mortgage premium requirement.
  • The VA limits the closing costs.
  • Closing costs may be paid by the seller.
  • The lender cannot charge a penalty if the loan is paid off early.
  • The VA may be able to provide assistance if there is some difficulty in making payments.
  • The veteran may use the benefit more than once.
  • VA loans may be assumed by another eligible individual.

 

Who Qualifies?

In order to qualify for a VA home loan, a veteran must have suitable credit, sufficient income, and be able to obtain a Certificate of Eligibility (COE). In order to qualify for a COE, the veteran must have served a certain amount of time based on their dates of service. For example, a Vietnam veteran must have served at least ninety consecutive days any time between 5 August 1965 and 7 May 1975. For a full list of eligibility dates, visit http://www.benefits.va.gov/HOMELOANS/purchaseco_eligibility.asp.

The spouse of a veteran may also qualify. The unremarried spouse of a deceased service member who passed away while in service or as a result of a service-connected disability, the spouse of a service member who is serving as a prisoner of war or is missing in action, the surviving spouse who remarries after the age of fifty-seven or after 16 December 2003, and the surviving spouse of a totally disabled veteran may qualify for a VA home loan.

Veterans may also re-qualify for a VA home loan if they paid the previous loan in full, the home was sold, or another VA loan-eligible buyer assumes the loan.

 

 

What Is The Process?

Before beginning the process, it would be a good idea to find a real estate agent who can help with the process. This will help the veteran understand some of the more complicated concepts and steps. Next, the veteran should find a lender that participates in the VA home loan program. The lender may be able to pre-qualify the veteran, showing them the possible size of the loan and what kind of interest rate they would have.

The veteran must then obtain a COE. More information on the COE process may be found at http://www.benefits.va.gov/HOMELOANS/purchaseco_eligibility.asp. Before seeking the COE, the veteran should have a copy of their DD-214, Social Security Number, and various other forms and information. After obtaining the COE, the veteran must find a home and negotiate a purchase agreement with a VA Options Clause. A good real estate agent will come in handy for this part of the process. The purchase agreement should also contain an escape clause in case the VA loan does not go through.

The veteran should then work with the lender to apply for a VA loan. This will require pay stubs and bank statements in order to determine sufficient income. The lender will also order a VA appraisal of the property to ensure the loan amount does not exceed the property value. They will also perform a credit check. After reviewing credit, income, and assets, the lender will make a decision concerning the loan’s approval.

If the loan is approved, then the lender will choose a title company, an attorney, or an agent of their choosing to conduct the closing. This person will determine the time and date that the property is transferred to the veteran.

 

Are There Any Limits On The Amount To Be Borrowed?

The VA does not set limits on how much the veteran may borrow, but it does cap off the amount that the VA will insure. The VA generally assumes up to $36,000 in liability. Lenders will usually loan up to four times that amount without requiring a down payment.

VA loans give veterans options to ensure that they are taken care of in the home-buying process. More information can be found at http://www.benefits.va.gov/HOMELOANS/purchasecashout.asp. Veterans have earned the privilege to own a home. VA home loans help them to accomplish just that.

 

 

 

Understanding Federal Grants (Part 1)
 Let me start off by asking you this question. How would you like free money that you will never have to pay back, from the federal government? Sounds great doesn't it? Well, the simple truth is that you can get it if the government decides to award you a...
Section 8 Vouchers Less Likely to be Accepted
 About 300 less, that is the number in Nashville, TN. Since 2010 there has been 300 fewer Section 8 vouchers accepted throughout the Greater Nashville Area. Families are being kicked out of their apartments and housing because the owners have just decided...
Readership Programs for Children
Readership Programs for Children The summer break may not always be beneficial to children. Studies show that children lose an average of one month of learning during the time off between school years. One way to counter this is to engross them in activities that...
How Do I Get FHA Refunds?
Although FHA refunds are for people who have FHA-insured mortgage loans, not everyone is entitled to a refund. Various factors are considered to determine who can receive a refund. FHA refunds are available for those who finance their homes within three...
Easy Formula for Grant Applications
When you look forward to apply for a government grant, you will need to do a lot of research and make elaborate preparations. To give a kick start to your grant seeking process, fist you must understand the different types of grants available. You will...
Applying and Making Phone Calls to Potential Employers
Applying and Making Phone Calls to Potential Employers Applying to Places Not Hiring: A Wise Move or Not? Are you in desperate need of a job? If you are currently unemployed or if you truly think that your current job is making you “crazy,” you may be due for a new...
Social Security Disability Benefit Application Help
 There are several advantages to applying for Social Security Benefits online. There is no need for an appointment and it will definitely save you time. Visitng your local Social Security Office can be very time consuming and frustrating. Read the...
5 Ways to Keep Your House During A Market Crash
Anyone paying attention to the housing market in the Los Angeles area knows that home prices have been at record highs. National Mortgage News suggests that this could be a housing bubble about to burst, and a decline in home prices and an increase in mortgage...
Job Hunting at Career Fairs
Are you looking to find a new job or a new career? If you are, you may want to try career day job hunting, as it is a great way to not only find available jobs, but also apply and interview the same day. Looking for new and exciting careers? Click the link below!...
Is Rent to Own Housing An Option?
Rent to own housing is a popular term that should be carefully considered. It can be an agreement between owner and seller to rent or lease a property until it is paid in full. The plan can work several different ways, some have zero deposits and no...
Increasing Literacy in Children
Increasing Literacy in Children Literacy is important. This is a fact that cannot be stressed enough. Often, arts and literature are tossed to the side to make way for additional funding in other areas, but learning to read lays the foundation for further education...
Are Discount Stores Really A Bargain?
It seems like dollar stores and other various discount stores are becoming a common retailer in most areas. Can these discount stores really offer you a bargain or do they just sell poor quality items? In my opinion, there are plenty of great bargains to be found in...
Things You Need to Know About Section 8 Assistance
Things You Need to Know About Section 8 Housing Some families might find a safe, decent and affordable housing as a big challenge to tackle. Majority of regions in the United States do not have rent control laws in place. Therefore some renters find affording a...
The World of Federal Grants
Welcome To The Wonderful World Of Federal Grants Federal Grants - If you are planning to go to college or university but know that you would never be able to afford it on your own, or with the help of your family for that matter, one of the first places...
The AHCA Impact on Medicare & Medicaid
The Impact on Medicare & Medicaid The repeal and replace legislation concerning the Affordable Care Act (ACA), or Obamacare, seems complicated for many consumers. Though it will likely see changes as it is debated in the Senate, the American Healthcare Act (AHCA)...
How To Get Involved with Affiliate Marketing or Direct Sales
How To Get Involved with Affiliate Marketing or Direct Sales Life can busy and complicated. With increased costs in childcare, one parent must often stay at home to watch the kids while the other parent works. Or, as someone begins their adulthood, they may need...
Understanding Federal Grants (Part 2)
 In the last issue we talked about how the federal grant system works and how you can make it work for you. In this issue we are going talk about exactly who's eligible to apply for federal grant money. The simple fact is that almost everyone is eligible...
Tips for Insurance Discounts
Home insurance and automobile insurance might be must-haves, but it doesn’t have to cost you an arm and a leg to have the appropriate coverages. There are things you can do to get discounts on your homeowners insurance and automobile insurance. Here are...
SNAP (Supplemental Nutrition Assistance Program)
The first nutrition assistance program was started in 1939. These types of programs were developed to help people during strenuous times and financial hardships. The program we know today (SNAP) was first introduced in 1961 as the Food Stamp Act that was...
Free Cell Phones: Avoid The Trap
Cell phones are becoming very sophisticated with the advancement in the technology. Today the cell phones come with lot of mind-boggling kinds of features on them. Due to the increasing competition between the handset manufacturers and the service providers, lots of...

Family Picnic

Enter Your Email for Best Results

Due to the overwhelming response, please enter your name and email to ensure the proper search results.

You Are On Your Way!

Family Picnic

Enter Your Name and Email for Best Results

Due to the overwhelming response, enter your email for best results. Look for your free ebooks from New Flex Career!

You Are On Your Way!

Family Picnic

Enter Your Email for Best Results

Due to the overwhelming response, please enter your name and email to ensure the proper search results.

You Are On Your Way!

Family Picnic

Enter Your Email for Best Results

Due to the overwhelming response, please enter your name and email to ensure the proper search results.

You Are On Your Way!

Family Picnic

Enter Your Email to Receive New Assistance Updates

Due to the overwhelming response, please enter your name and email to ensure proper results.

Thank You! You will now receive the latest assistance updates!

Pin It on Pinterest

The More You Share. The More We Can Help!

Share these posts & pages with friends!