VA HOME LOANS- VA Home Loans came about for veterans in 1944 through the original service men’s readjustment act also known as the “GI Bill of Rights”. The GI Bill was signed into law by President Franklin D. Roosevelt and provided veterans with a federally guaranteed VA home loan with no down payment. This mortgage loan is a true 100% financing option that every veteran home buyer should take advantage of.
HOW THE VA LOAN WORKS- The VA home loan guarantees 25% of the home loan amount up to $104,250. Most mortgage lenders require 20% down payment because of the 25% VA home loan guarantee veterans no longer need a down payment because the VA lender is guaranteed up to 25% equity from the VA. However, the maximum VA loan guarantee is 104,250 means veterans are caped at a VA home loan amount of $417,000. The fee for the VA home loan guarantee is called funding fee and is currently (2.15%)of the loan amount and can be financed in to the new VA home loan.
Don’t waste time fill out a full VA mortgage application and we will handle all the VA paperwork for you!.
BENEFITS OF VA HOME LOAN
- The VA loan offers TRUE 100% Financing (No down payment required to purchase a home)
- With a VA mortgage, the seller can credit up to 4% of the sales price to cover all of your closing cost including prepaid taxes, insurance ect.
- VA loans have less restrictive credit guidelines than a conventional home loan.
- VA First time home buyers allowed.
- No mortgage insurance (MI) with a VA mortgage insurance saves hundreds of dollars monthly.
- No income restrictions VA home loans. VA home loans are made by private mortgage lenders but guaranteed by the federal government. These private VA mortgage lenders include banks, savings & loans, and mortgage companies to eligible veterans for the purchase of a home for their own personal occupancy. The VA home loan guaranty means that mortgage lenders are protected against loss if you default on the home loan. The home loan guaranty replaces the protection that mortgage lenders normally receive by requiring a 20% down payment and VA mortgage insurance allowing veterans to obtain the best financing terms.
VA HOME LOAN ELIGIBILITY
- A copy of the veteran’s DD form 214 – if the veteran has been discharged or has retired from active military service.
- Statement of Service – the veteran should obtain if still serving on active duty. As a leading VA mortgage resource, mortgage and loan may be able to obtain the certificate of eligibility for you. We have access to (automated Certificate of Eligibility) system. We will still need proof of service if we can obtain your certificate in this way. Not all cases can be found through the ACE system, only those which the VA has sufficient information on file for. If you have had a VA home loan before you can re-use your eligibility again as long as the home was not foreclosed on in which case the VA would have suffered a loss in this case you would not be eligible for the VA loan program again.
- Veterans who served on active duty and have a discharge are eligible other than if the vet had a dishonorable after a minimum of 90 days of service during wartime or a minimum of 181 continuous days during peacetime.
- 2 years requirement if the veteran enlisted and began service after September 7, 1980 or was an officer and began service after October 16, 1981.
- 6 year requirement for National guards and reservists with certain criteria and there are specific rules concerning the eligibility of surviving spouses.
- If you are now on regular duty (not active duty for training), you are eligible after having served 181 days unless discharged or separated from a previous qualifying period of active duty
- If you are an unmarried spouse of a veteran who died while in service or from a service connected disability.
- If you are a spouse of a service person missing in action or a prisoner of war.
- A Vets surviving spouse who remarries on or after attaining age 57, and on or after December 16, 2003, may be eligible for VA CERTIFICATE OF ELIGIBILITY. The VA home loan program requires mortgage applicants to complete VA form 26-1880 along with proof of military service. In some cases it may be possible for VA home loan applicant to establish edibility without proof of service. However, it’s best to provide evidence of veran status to avoid any possible delays.