If you are looking to get a VA mortgage, you probably have some questions. With a life decision like this, you want to be as educated as possible to avoid mistakes along the way. The US Department of Veterans Affairs offers a variety of resources and here are some answers to VA mortgage FAQs.
How do I apply for a VA loan?
If you are looking to apply for a VA loan, you’re going to need to find a lender that is actively participating in a VA loan program. Also, be sure to have proof of your military service; as this will be needed to issue your loan.
Do all local lenders offer VA Loans?
Not all lenders near you offer this type of loan. Be sure you pick a lender that is VA approved. The company you choose will help you review your history and documents to determine how much you qualify for under a VA loan. Keep in mind that fees and costs are different depending on what mortgage lender you choose.
Who is eligible for a VA Home Loan?
You are eligible for this loan if you fit one or more of the following:
- Have six years or more of service in the Reserves or National Guard
- Have served for 181 days of active service during peacetime
- Have served for 9o days consecutively during wartime
- You are a non-remarried surviving spouse of a service member who has unfortunately passed away in the line of duty or due to a service-related disability. The children of the service member are not eligible.
Note that your eligibility is not based solely on Active Duty for Training in the National Guard or Reserves,
Why get a VA loan over other types?
You can get this loan with a clear mind knowing that you can purchase your dream home with absolutely no down payment. There are other benefits like no limits on buyer closing costs, an appraisal so you can assess the home value, and no monthly mortgage premiums to pay. Unlike most loans, VA performs personal loan servicing. This loan also offers financial counseling to its borrowers facing hardships.
How can I obtain proof of military service?
You may need to apply for proof of service by filling out a VA Form 26-1880, which is a Request for a Certificate of eligibility. Once the request is authorized, your proof will be forwarded to the address you provided.
Sometimes, a VA approved lender can use a special database called the Automated Certificate of Eligibility. Using this program will help your lender get you started with the loan process. Keep in mind that this database may not work for every service member trying to get a VA loan
What is the maximum dollar amount I can borrow?
For eligible service members and survivors that have full entitlement, there are no longer limits on loans over $144,000. This means that you won’t need a down payment and if you default on a loan over $144,000, the government will guarantee to your lender 25% of the laon amount. You can learn more about full entitlement and loan limits here.
Can I get a home equity refinance?
Yes, you can! If you are looking into refinancing, a VA refinance might be your best bet. With VA refinancing, your real estate debt will be paid out of the proceeds from a new VA mortgage loan. The main requirement is that the borrower must be refinancing the same property used prior. This can also be called a “cash-out” refinance. There are many refinancing strategies that could be helpful to you.
If you are looking to get a VA home loan, you want to make sure you are being taken care of. Make the best decision for you and choose a company that works best for your situation. Call us today and we’ll get you connected with one of our VA loan specialists.