VA Home Loans For Vets

More than 27 million veterans and service personnel are eligible for VA financing. Obtaining a VA home loan is easier now than ever before, thanks to today's computer age. These loans are made by a lender, such as a mortgage company, savings and loan or bank. VA's guaranty on the loan protects the lender against loss if the payments are not made, and is intended to encourage lenders to offer veterans loans with more favorable terms.

There are six steps in obtaining a VA Home Loan:

1. Find the property suitable for your needs

2. Go to a lender, and apply for the loan

3. Present your discharge or separation papers relating to latest period of service and/or a Certificate of Eligibility

4. Property is appraised by approved appraiser

5. Estimate of property's reasonable value is determined

6. If application is approved, you get the loan

A VA Loan is often made without any down payment at all. Aside from the veteran's certificate of eligibility and the fact that the appraiser is assigned by VA, the application process is not much different than any other type of mortgage loan. And if the lender is approved for automatic processing and the Lender Appraisal Processing Program (LAPP), as more and more lenders are now, a buyer's loan can be processed and closed by the lender without waiting for VA's approval of the credit application or for VA to review the appraisal. Lenders are also able to use VA recognized automated underwriting systems, such as Loan Prospector and Desktop Underwriter, to facilitate the underwriting process.

WHO IS ELIGIBLE?

Veterans with active duty service, that was not dishonorable, during World War II and later periods are eligible for VA loan benefits. World War II (September 16, 1940 to July 25, 1947), Korean conflict (June 27, 1950 to January 31,1955), and Vietnam era (August 5, 1964 to May]7, 1975) veterans must have at least 90 days' service. Veterans with service only during peacetime periods and active duty military personnel must have had more than 180 days' active service. Veterans of enlisted service which began after September 7, 1980, or officers with service beginning after October 16,1981, must in most cases have served at least 2 years.

Gulf War and currenty war veterans. Basically, reservists and National Guard members who were activated on or after August 2, 1990, served at least 90 days and were discharged honorably are eligible. VA regional office personnel may assist with eligibility questions. Members of the Selected Reserve, including National Guard, who are not otherwise eligible and who have completed 6 years of service and have been honorably discharged or have completed 6 years of service and are still serving may be eligible. Contact the local VA office to find out what is needed to establish eligibility.

Remaining Entitlement

Veterans who had a VA loan before may still have "remaining entitlement" to use for another VA loan. Remaining entitlement and restoration of entitlement can be requested through the nearest VA office by completing VA Form 26-1880.

Below are helpful links to what the VA has to offer and eligibility:

VA Pamphlet 26-4 VA-Guaranteed Home Loans for Veterans. This pamphlet is designed to help veterans planning to purchase or construct homes, particularly those veterans who intend to finance with VA home loans.

VA Pamphlet 26-6 To the Homebuying Veteran - A guide for veterans planning to buy or build homes with a VA loan. Start here for brief information about VA Home Loans.

Pamphlet 26-71-01 Questions and Answers on Manufactured Home Loans for Veterans. The questions and answers included in this pamphlet are intended to cover major items of interest to veterans interested in buying a manufactured (mobile) home.

VA Pamphlet 26-93-1  VA Direct Home Loans for Native American Veterans Living on Trust Lands. VA direct home loans are available to eligible Native American veterans who wish to purchase or construct a ho me on trust lands.