VA Home Loan Benefits
There are several benefits offered through these loans, all of which make the VA loan one of the best types on the market today. Here are some of those benefits.
- There are no PMI payments with these VA loans. PMI, or Prime Mortgage Insurance, is required by most homeowners to be paid every month with their mortgage payment until they have paid a portion of the home off. This insurance can be costly, at the rate of $40 to $65 per month. With VA loans, you do not have to pay this.
- There is no down payment required at the time of purchase for your home. This really opens the door for most borrowers because they do not have to have the estimated 20 percent of the home's value in cash to pay down.
- The federal government strictly controls these loans including which lenders can offer them. Most are able to do so, but they must follow strict guidelines to maintain eligibility. More so, the federal government also regulates just how much can be charged to you as closing costs as well as origination fees. These aspects also lower your costs in purchasing the home.
Those considering a VA mortgage loan will need to talk with their lender about the requirements for securing these. You will need to show proof that you are eligible through a VA Certificate of Eligibility, which they can help you to obtain. The VA home loan is an ideal choice for many Americans that want to purchase their first or additional homes up to $417,000. Talk to your lender to determine if they do, in fact, offer this type of loan and how you can qualify for it.
Helpful and Informative Resources
- VA Home Loan Guaranty Services
U.S. Department of Veterans Affairs Loan Guaranty home page - VA Home Loan Guaranty Service Resources
Department of Veterans Affairs information page with links to informative articles and pamphlets - VA Loan Eligibility
Department of Veterans Affairs page defining VA Loan eligibility and process for requesting Certificate of Eligibility - VA Loans Made Easy
Army.com page summarizing the VA Loan process in easy to understand terms - VA Loan - Wikipedia
Wikipedia entry summarizing the VA Loan history and process.
Do I Qualify?
The VA loan, or Veteran's Administration loan, allows those that have served the United States an opportunity to purchase a home. To qualify for this type of loan, there are several considerations that must be kept in mind. These stipulations may seem confusing, but your loan officer can help you to work through them so that you can qualify for the VA loan faster.
Basic Rules of Eligibility
One of the first rules that define whether or not you are eligible for the loan is your military history. You must have served in some capacity of active duty in a branch of the military. This can be in the Coast Guard, the Army, the Marine Corp, the Air Force or the Navy. In addition, you must have been discharged without being discharged dishonorably. With that, you must have been active for 90 days or more of which any amount of that time happened during wartime. Alternatively, you served more than 181 days or more during peacetime.
In addition to this, there is a two year requirement for some. For example, if you were enlisted and your service started after September 7, 1980 or you held the title of officer and your service began after October 16, 1981, then the rules are a bit different. You must have done one of the following things to be eligible for these veteran's benefits. You needed to serve 24 months continuously. Or, you served all of the required period for which you were ordered that is not less than 90 days of which part of that was wartime or 181 days continuously during peacetime.
Additional Eligibility Options
Others are eligible for these veteran's benefits as well. If you were discharged because of a disability that is the result of your service or discharged because of some type of hardship, then you too may qualify for a VA loan. Those that are discharged due to a convenience of the government, after serving at least 20 months of their two year enlistment also qualify for this loan. Other qualifications also exist for many of those that have served or are serving today. Because many of the VA home loan requirements are so difficult to wade through, it is helpful to find a specialized lender that offers veteran's lending help specifically.
For Those Still Serving
The government wants to provide you and your family with the home that they need which is why currently serving military personnel can qualify for a VA loan. To determine what your VA loan eligibility is, consider these elements:
- Are you on active duty now?
- Have you been actively service for at least 90 days?
- Do you have wartime active duty? If not, once an end date for the Persian Gulf War is listed, you will need to have served at least 181 days continuously on active duty to qualify for the 181 requirement for a VA loan.
For those that are members of the reserve, there are options for you too. If you are a member of the Selected Reserve of the Ready Reserve, or of any component of these units, then you too many be eligible for a VA loan. You must be active in paid training and serve your active duty training period each year to qualify.
These VA home loan basics are flexible in that a person to person consideration is done. VA loan eligibility is based on if you are an active duty, if you served long enough, and if you left on good terms.
VA Certificate of Eligibility
Before you can apply for and secure a VA loan, you will need to have a VA Certificate of Eligibility which states your military history. Your loan officer can help you to secure these forms and can help you to determine if indeed you do qualify for these loans.
