Frequently Asked Questions
Who Qualifies for a VA Loan?
There are several different standards for qualification of a
VA loan. If you are not sure that you qualify, you should speak
with a mortgage broker or VA loan professional or read more
about VA loan qualifying here. One of the first step towards
getting a VA loan is filling out a Certificate of Eligibility.
Basic qualification criteria for obtaining a VA Loan:
- Active-duty veterans discharged during WWII and later periods,
without the status of "dishonorable."
- Active-duty veterans who served at least 90 consecutive
days during major conflict.
- Peacetime veterans and active duty personnel who have served
more than 180 days of consecutive service.
- Enlisted veterans whose service began after 1980 or officers
whose service began after 1981 who have served 2 years.
- National Guard members and Selected Reserve members may
also qualify. Check your eligibility through a qualified VA
loan specialist if you have any questions.
What Can I Use a VA Loan For?
You can use your VA loan to purchase a house, condominium, or
townhouse. You can also build a home or purchase a home and
make improvements with your VA loan. Refinancing of a mortgage
can be done with a VA loan, as well as improving your home with
energy-related features.
Why Would I Want A VA Loan?
There are several reasons why a VA loan may be preferable to
a standard loan. Most importantly, if you qualify, you may obtain
a VA loan even if other loans were unobtainable. There also
may be no down payment required for a VA loan, depending on
the lender. VA loans also tend to have lower interest rates
than conventional loans, and you can often negotiate the interest
rate with the lender. There are no mortgage insurance premiums
on VA loans, and they do allow for an assumable mortgage. Closing
costs for purchasing a home can be lower than other forms of
financing, and prepaying your mortgage holds no penalty, as
in some other forms of loans. In addition, VA assistance is
available to those who qualify if temporary financial difficulty
occurs.
How Much Money Can I Borrow?
The VA does not put a cap on how much money you can borrow.
This determination is up to the lender, typically a bank, savings
and loans, or mortgage companies. The basic entitlement of a
VA loan is $36,000, but some loans are eligible for $60,000
if they are over $144,000. A lender will often loan up to 4
times the amount of the basic entitlement without any requirement
of a down payment.
Limit increase! Although there is no set maximum limit the VA
allows you to borrow with your entitlement, most lenders and
financial institutions will not approve a total of over $417,000.
Lenders typically sell VA loans in a secondary market, where
the cap for a loan limit is $417,000.
Veterans who have already taken out a VA house loan in the past
may still be eligible for remaining entitlement for any unused
previous balance. Because entitlement amounts have increased
over time, this means that many people who took out VA loans
in the past may be eligible for more money now than they were
entitled to before. Fill out our form or call us today to find
out if you qualify.
VA Loan History
The VA home loan guaranty program was formed in 1944 to aid
veterans returning from war. The overall objective of VA home
loan benefits was to minimize possible economic and sociological
problems experienced by post war readjustments of the men and
women serving in the United States Armed Forces. This basically
means that veterans' are given a leg up through the Veteran's
Administration towards purchasing or refinancing a home in gratitude
for the sacrifices they made by serving our country.
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