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.

 

 

 

How To Get The Best Insurance Deals
In most cases finding the best insurance deals is difficult. Since having insurance is a requirement rather than being optional it is a good idea to shop around for the best insurance deals. It’s difficult to shell out the cash for insurance premiums and...
Who Qualifies for VA Home Loans
For 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....
Helping Homelessness with Government Grants
 Poverty and homelessness in the United States and around the world is increasing on a daily basis. Here in the United States, rising housing costs and lower livable wages have been among the 2 biggest contributing factors. Lack of mental health facilities...
Best and Worst Student Loan Services
Best and Worst Student Loan Services This is the time of year when hundreds of thousands of Americans begin to prepare for their first semester in college. They begin to seek out the items that will sustain them during dorm life. Parents spend money on new sheets, hot...
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...
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...
Examine Failures and Find Inspiration
How to Examine Failures and Use it as Inspiration Sometimes, when we fail, it can feel like the end of the world. None of us like to be told that we are doing something wrong. None of us like to experience setbacks in our plans. It can make us question our self-worth,...
Morning Habits for Success
Are you a morning person? Many people enjoy getting up at the sunrise and having a cup of coffee while they browse the web and others prefer to sleep in as long as possible but the most successful people in the world embrace the mornings and in fact there...
Best Advice for Seeking Employment
Your career and life depend on you taking the time to learn all that you can about earning gainful employment. You cannot get a job without finding the right approach that will open up opportunities. Keep reading if you wish to learn more. Speak with...
Home Improvement Grants
 Is your home desperate for repairs? Are you at your financial limits, broke...flat broke? Have you ever wondered how it would feel to have the government help you be able to afford these critical repairs? Help is possible through new home improvement...
Lifeline Assistance Program
 There is now a program out there that can even help with your cell phone. The special government program called Lifeline Assistance that offers a free phone and minutes to those who qualify. Getting on the list is not very hard, but there are a few things...
4 Most Challenging Discussions You Can Have With Family (And How To Have Them)
It's not always easy to practice open and honest communication, especially with your family. Unfortunately, that lack of communication can have serious consequences. If you're having a hard time finding the courage to approach your family about an issue you're...
Financial Aid: Grants for Women
 Thanks to thousands of grants, women who want to go back to college and earn a degree can do so without worrying about large tuition fees. Grants for women are available for single moms, minority women, and women that are going in to specific fields of...
Rent Assistance and Low Cost Housing
With todays economy fluctuating , many individuals and families are struggling to pay bills in a timely fashion, including their rent. The good news is that there are a variety of options available to anyone who is facing late fees, court dates or even...
You Can Save Money on Your Monthly Bills By Reading These Tips
When you add up the total cost of your monthly utility bills, you may be astounded by how expensive utilities can be. This may be particularly true during peak usage months in the height of summer and in the dead of winter. You and your family...
Feeling Lost? Free (Or Cheap) Career Assessment Tools
(Image Source) In today's world, more people are struggling to pay/find for housing, medical bills, education, and other aspects of life. As a result, embarking on a new career is becoming a popular option to better themselves and their families. However, when...
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...
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...
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...
Receiving $4000 in Home Rebates
 Are there any home improvements that you have been contemplating lately? Are you struggling to make ends meet already? Learn more about three Programs a that could help you and millions of homeowners qualify for a $4,000 rebate. These Are Very Tough...

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 ebook from New Flex Career about finding unclaimed money!

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!

Pin It on Pinterest

The More You Share. The More We Can Help!

Share these posts & pages with friends!