Subscribe

Who Qualifies for VA Home Loans

by | Veterans

veterans 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. 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.

 

 

 

“Believe in The Power of 3”
The number 3 is the first number to which the meaning “All” was given. It is the number of the whole as it contains the beginning, a middle, and an end. When you raise the number 3 to a second power, it simply magnifies everything you already have and...
Unpaid Wages Recovery Guide
If you worked for it, then you should get all upaid wages. Everyday can be a struggle and still come up on the short end of the stick. That is why you may be frustrated when you are not paid the money you are owed. Fortunately, there are many steps that you can take...
How to Manage Credit Card Payments
Do you have issues paying off credit cards? Sometimes the interest itself can be an overwhelming monthly payment. We have gathered some information below from credit experts that can hopefully help you manage your payments and find a way out from under...
How To Get A Work-From-Home Job and Earn $275 Per Day
How To Get A Work-From-Home Job & Earn $275 Per Day There are many advantages to working from home. There's no expensive and time-consuming commute, for example, and it's also possible to work from home while juggling other responsibilities. However, while many...
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...
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!...
Getting The Most Out of Your Dental Insurance
If you have dental insurance, it is imperative to know how to get the best out of it. There are several things that you need to understand to maximize the cover for the betterment of your teeth. Your dentist is the most resourceful person to advise you on how to get...
5 Common Ways Families Overspend
If you are looking for ways to free up extra money in your family budget, you are not alone. You may be eager to use any extra money that you can find for debt reduction, savings, or other goals. While it may seem as though there is little or no extra room to scale...
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...
History of St Patrick’s Day
 St. Patrick’s Day is celebrated annually on March 17, the anniversary of his death in the fifth century. The Irish have observed this day as a religious holiday for over 1,000 years. On St. Patrick’s Day, which falls during the Christian season of Lent,...
Government Grants Exposed
You and I have heard it all before, the man with the funny jacket on late night TV telling us that the United States government gives out over 30 Billion dollars in grants every year. And if we want any of that for ourselves, all we have to do is send him...
Accepting Failure | Achieve Success
Everybody has a setback every once in a while, but it doesn’t mean that there is anything wrong with you. In fact, accepting failure can be a great opportunity to learn your own limitations and boundaries, then push through them, and provide you with a...
Women Grants in The United States
A lot is being granted to the citizens of America in the name of grant scheme. Various categories of financial needs are being accomplished through these grants. Some of the most popular grants schemes ever are the grants for men, grants for women, grants...
Best Way to Build Your Credit Rating
In today’s world, credit can be easily destroyed. If you are young and entering the adult world, you may not always understand how to maintain a great credit rating. Often, you do not qualify for a loan or credit card due to having no credit. Lapses in employment or...
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...
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...
Feeling Lost? Free (Or Cheap) Career Assessment Tools
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 choosing a new career,...
How A Home Warranty Will Save You Money
A Home Warranty Will Save You Money Owning a home can be expensive. Appliances break down, and air conditioners tend to quit working in the middle of the summer. In fact, most home have a major mechanical breakdown twice each year. Usually, these breakdowns occur at...
Natural Antibiotics and Antivirals
The issues of antibiotics and antibiotic-resistant bacteria have gotten a lot of attention lately. The concern is that bacteria, having been exposed to antibiotics for so long, have developed a resistance to the antibiotics, creating "superbugs." The grim reality is...
The Best Self Help Gurus
In the world today, it is easy to come across scammers looking to take advantage of people in their weakest moments. The realm of self-help is no different. In fact, it can be much worse. Self-help scammers apply abstract concepts so that unsuspecting people will fork...
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!

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

Share This