VA
VA Home Loans
What are VA programs?
Can National Guard vets, and other reservists, get VA loans?
Who can get a VA loan?
How does someone qualify for a VA loan?
Where do I get information on VA loans?
What if a VA loan is foreclosed on?
VA Home Loans
Veterans Administration loans are very attractive because the buyer is not required to make a down payment. The maximum loan amount the U.S. Department of Veterans Affairs will insure varies by region. There is no restriction on the purchase price a long as you have the cash to make up the difference between the loan amount and purchase price.
Millions of veterans and service personnel are eligible to participate in the U.S. Department of Veterans Affairs' Home Loan Guarantee Program. VA loans can be used to buy a home, build a home, improve a home, or to refinance an existing loan. The Veteran's Benefits Improvements Act of 1994 gives men and women who have completed 6 years in the Army, Air Force, Marine Corps or Coast Guard Reserves or the Army National Guard or Air National Guard eligibility for VA home loans, including no-down payment programs.
Basic Eligibility
- Discharged Veterans A DD214 is required. The DD214, with some additional forms provided by the lender are sent to the VA for a certificate of eligibility. Once issued, the certificate of eligibility is the lender's proof that the veteran has access to a VA loan.
- Veterans Still On Active Duty You will be asked to provide a "current statement of service signed by, or by the direction of, that adjutant, personnel office, or the commander of the unit or higher headquarter that you are attached to." This must show your full name, social security number, date of birth, entry date on active duty, duration of lost time (if any), and the name of the command providing the information.
- Discharged Reserve/Guard Members You can submit a NGB22, report of separation and record of service, or a points statement. Members of the Reserves and/or National Guard typically receive an annual retirement points summary. You should be prepared to provide the most recent statement along with evidence of honorable service.
- Current Reserve/Guard Members A letter from the same source as a Veteran still on active duty, with the following details; veteran's full name, social security number, entry date of Reserve or Guard duty, and the name of the command providing the information. This statement must clearly indicate that the member is an active reservist and not just in a control group.
Once you have established eligibility, you can proceed with qualification for the mortgage. To apply for a Certificate of Eligibility you will need to complete Form 26-1880 Additional Information U.S. Department of Veterans Affairs (800) 827-1000 VA Home Loans Dept of Veterans Affairs 810 Vermont Ave., N.W. Washington, DC 20420
What are VA programs?
Veterans Administration loans, which are available to veterans, reservists and military personnel, are attractive because the buyer is not required to make a down payment. The maximum loan amount the U.S. Department of Veterans Affairs will insure varies by region. There is no restriction on the purchase price as long as you have the cash to make up the difference between the loan amount and the purchase price.
For the nearest regional office of the U.S. Department of Veterans Affairs, call (800) 827-1000.
Can National Guard vets, and other reservists, get VA loans?
The Veteran's Benefits Improvements Act of 1994 gives men and women who have completed six years in the Army, Air Force, Marine Corps or Coast Guard Reserves or the Army National Guard or Air National Guard eligibility for VA home loans, including no-down payment programs. If you are a reservist or a National Guard veteran, you can receive VA home loan benefits, but you will pay higher funding fee, up to 2.75 percent of the loan amount. If you make a down payment, the fee can be incorporated into the loan amount
Who can get a VA loan?
Millions of veterans and service personnel are eligible to participate in the U.S. Department of Veterans Affairs? Home Loan Guarantee Program, which in most cases requires no down payment. VA loans can be used to buy a home, build a home, improve a home or to refinance an existing loan.
After issuing a certificate of eligibility to the vet, the VA guarantees the loan to the lender up to $203,000. VA loans frequently offer lower interest rates than ordinarily available with other kinds of loans. To qualify for a loan, the first step is to apply for a Certificate of Eligibility (complete Form 26-1880). Call (800) 827-1000 for more information about VA programs.
How does someone qualify for aVA loan?
After issuing a certificate of eligibility to a veteran, the U.S. Department of Veterans Affairs guarantees the loan to the lender up to a certain amount. VA loans frequently offer lower interest rates than ordinarily available with other kinds of loans. The Veteran's Benefits Improvements Act of 1994 gives men and women who have completed six years in the Army, Air Force, Marine Corps or Coast Guard Reserves or the Army National Guard or Air National Guard eligibility for VA home loans, including no-down payment programs.
To qualify for a loan, the first step is to apply for a Certificate of Eligibility (complete Form 26-1880). Call (800) 827-1000 for more information.
Please note that lenders now use automated underwriting when evaluating a client's loan application. This means that a computer will make a recommendation as to whether or not you are qualified to buy a home and within what price range. As mentioned above, there are cases where the minimum guidelines can be exceeded and alternative loan programs can be used to provide solutions to high debt-to-income ratios. Qualifying for any given mortgage is dependent on a combination of your income, financial assets as well as your credit history.
Where do I get information on VA loans?
For information on VA loans, call the U.S. Department of Veterans Affairs directly at (800) 827-1000.
Also refer to:
- "To the Home-Buying Veteran," Department of Veterans Affairs; 810 Vermont Ave., N.W.; Washington, DC 20420.
- "VA Home Loans," Department of Veterans Affairs, 810 Vermont Ave., N.W., Washington, DC 20420.
What if a VA loan is foreclosed on?
VA loan holders who suffer a foreclosure must repay the full debt before the federal agency will insure another loan. People with concerns about a specific loans should contact their lender or the VA directly at (800) 827-1000.