Additional Va Eligibility Information
If youre a veteran wanting to purchase a primary residence, your requirements are surprisingly few. Sufficient credit, income, and employment can help you to purchase without a required down payment on the price of the home, just as long as the sale price doesnt exceed the homes appraised value.
There are many other advantages to having a VA loan for veterans who are ready to purchase a home. These include:
VA home loans are assumable, as long as the person who is assuming the loan is qualified The Veterans Administration limits closing costs on the loan, so you wont be asked to pay more than what is a fair price The VA is ready to assist you if youre having problems making your loan payments You can always prepay a VA home loan with paying a penalty
So, who is eligible for a VA loan? Eligibility for VA financing is available to veterans who served in a recognized branch of the armed forces for at least 90 days in the following service categories:
World War II Vietnam Era Persian Gulf War
Any veteran who was discharged under honorable conditions and gave at least 90 days of service which started prior to September of 1980. The veteran must have served at least 24 months of service.
Known as the Two-Year Requirement, if you enlisted after September 7th, 1980 , OR were an officer and your service began after October 16th, 1981, you must have successfully completed either:
Are Surviving Spouses Eligible For Va Loans
Surviving spouses of veterans and military personnel can be eligible for a VA loan. To be eligible, at least one of these conditions should be true:
- The veteran is missing in action
- The veteran is a prisoner of war
- The veteran died while in service or from a service-connected disability and the spouse didn’t remarry
- The veteran died while in service or from a service-connected disability and the spouse didn’t remarry before they were 57 years old or before December 16, 2003
- The veteran had been totally disabled and then died, but their disability may not have been the cause of death
To buy or refinance a house, the surviving spouse will need a Certificate of Eligibility . The Department of Veterans Affairs website has more information on how to get a COE.
Do I Qualify For A Va Home Loan
The Department of Veterans Affairs tries its best to make this program available to military home buyers at all financial levels.
So even if you dont have an eligible VA loan co-signer, its worth checking with a lender to see whether you qualify.
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Housing Help For Older Veterans
Find programs to help older veterans with a wide range of housing needs. This includes in-home care, assisted living, and retirement homes for veterans.
If you need in-home care so you can remain at home, the VA may be able to help. Call the VA Health Care Benefits number at . Or, contact the VA medical center nearest you.
Another option for some military retirees and other veterans is the Armed Forces Retirement Home . The AFRH has two locations: Washington, DC, and Gulfport, MS. Both offer recreation and wellness services including assisted living and skilled care.
How Are The Guaranty And Down Payment Determined
When there are VA-eligible and non-VA-eligible borrowers buying a home together, lending rules are different.
In these cases, the lender must pro-rate the amount of the VA guaranty. In other words, it limits the amount that can be purchased with no down payment.
- Vets portion: $200,000
- Maximum guaranty = 25 percent of $200,000
In scenarios like this one, the lender making the VA loan will often require a down payment on the non-VA-eligible portion.
For example: The non-VA borrower is responsible for $200,000. So their down payment is equal to 25% of $200,000 or $50,000 total.
This down payment requirement for non-VA borrowers helps protect lenders.
Since VA loans are guaranteed up to 25% by the Veterans Association, lenders expect that same level of protection even when a non-VA-eligible person is co-borrowing.
Thus, the 25% down payment required on that persons portion of the loan.
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Can I Use A Coe I Used Before
You may be able to restore an entitlement you used in the past to buy another home with a VA direct or VA-backed loan if you meet at least one of the requirements listed below.
At least one of these must be true:
- Youve sold the home you bought with the prior loan and have paid that loan in full, or
- A qualified Veteran-transferee agrees to assume your loan and substitute their entitlement for the same amount of entitlement you used originally, or
- Youve repaid your prior loan in full, but havent sold the home you bought with that loan
To request an entitlement restoration, fill out a Request for a Certificate of Eligibility and send it to the VA regional loan center for your state.
Bottom Line: Is A Va Loan Right For You
A VA loan may be a good choice if you dont have perfect credit, or you want to buy a home without a down payment but dont want to pay mortgage insurance. Just be aware that you need proof of military service to be eligible and youll likely have to pay a funding fee that could add significant cost to your loan.
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Can A Married Couple Jointly Own A Property In Virginia
In modern times the belief that a married couple is a separate entity has largely been abandoned. However, in Virginia a married couple may still choose to jointly own property as a single legal entity. Section 55-20.2 of the Virginia Code grants a husband and wife the special joint ownership rights of tenancy by the entirety.
Homeless Resources For Special Groups
These resources are geared toward specific audiences:
Housing programs and street outreach – Find stable, safe housing. You can also get education help, survival aid, counseling, crisis intervention, and follow-up support.
People with Mental Illness
Projects for Assistance in Transition from Homelessness – Find help if you have a serious mental illness. The PATH program can assist you if youre homeless or at risk of homelessness.
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Section : Military Spouse Credit Considerations
Every borrower on the loan must meet the lenders minimum credit score for VA loans. Those benchmarks can vary by lender and other factors.
A veteran with outstanding credit cant somehow compensate for a spouse whose score is below the lenders cutoff, and the reverse holds true, too. Both borrowers either meet the requirement or they dont. At Veterans United, prospective buyers who dont meet our current benchmark can work for free with our credit experts on a plan to boost their scores into qualifying range.
Lenders will quote interest rates based on credit scores. When there are multiple borrowers on a loan, lenders will base their rate quote on the lowest score.
Guidelines and policies for these types of derogatory credit can vary by lender.
Getting a good handle on your credit is key before starting the VA loan process. Use a credit monitoring service or get free copies of your reports from AnnualCreditReport.com. Look for errors, credits accounts that arent yours, and other issues that might be hurting your score.
Who Is Eligible To Receive A Va Loan
If youve served in the armed forces, youre sure to have seen lists of benefits in which veterans are entitled. Perhaps the biggest benefit of being a veteran is the VA loan. Whether youre active duty, a service veteran, a surviving spouse or even, in some cases a civilian, you may be eligible for a VA loan. In all cases, the VA has specific requirements that must be met before a veteran is considered eligible.
Active duty military, veterans, surviving spouses, and in some instances civilians are eligible for a VA loan. VA loans have requirements the veteran must fulfill before they can be considered eligible.
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Qualifying For The Non
Non-eligible co-borrowers do not have to certify that they will reside in the home.
For them, underwriting is slightly different. The non-eligible borrowers credit must also be satisfactory. However, the combined income of both borrowers can be considered in evaluating his or her repayment ability.
In other words:
- Income strength of the eligible borrower can offset income weakness of the non-eligible borrower.
- Income strength of the non-eligible buyer cannot offset income weakness of the veteran.
Your lender has to submit your application for prior approval to the VA. Expect your full loan approval to take a little longer because of this, and build that into any offer you make.
Exploring Va Loan Spouse Requirements
September 13, 2019 By PrimeLending: Manhattan, Kansas
Youre shopping for a home with your significant other, and youve determined that one or both of you are eligible for a VA home loan. That means that you have a fantastic opportunity to snag a great deal on a mortgage featuring both favorable terms and built-in consumer protections. However, the ins and outs of this government-backed mortgage program are different from conventional mortgages, so youll need to make sure that youre checking all the right boxes. What are the VA loan spouse requirements? What impact do they have on your mortgage?
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In Terms Of Eligibility You’re Likely Able To Participate In The Va Mortgage Program If You’re:
- The un-remarried spouse of a veteran who died while serving or from a service-connected disability
- The surviving spouse of a veteran who died while serving or from a service-connected disability who remarries after age 57, and on or after Dec. 16, 2003
- A spouse of a service member who is MIA or a POW
- Was receiving compensation at time of death for a service-connected disability rated totally disabling
- Was continuously rated totally disabled for at least 10 years immediately preceding death
- Was continuously rated totally disabled for at least five years from the date of discharge or release from active duty
- Was a former POW who died after Sept. 30, 1999, and was continuously rated totally disabled for at least one year immediately preceding death
If you believe or want to know if you’re eligible and are interested in pursuing a VA home loan, you can contact a Veterans United loan specialist at 855-870-8845. You can also fill out and send in an official request for a determination from the VA.
Section : Va Loan Benefits
VA loans are the most powerful home loan option on the market for so many military families. These loans are made by private lenders like Veterans United and backed by the Department of Veterans Affairs.
VA loans have been helping veterans, service members and military families become homeowners for more than 75 years, thanks in large part to some big-time benefits.
Heres a look at four big ones:
- $0 down paymentIts tough to overstate how huge this advantage is for military buyers. FHA loans require 3.5 percent down, while conventional loans often require at least 5 percent. On a $250,000 loan, that translates to an $8,750 down payment for an FHA loan and a $12,500 down payment for a conventional loan. VA buyers dont have to spend years scraping together that kind of upfront cost.
- No mortgage insuranceFHA, conventional and other mortgages often come with expensive monthly mortgage insurance unless you can make a substantial down payment. That extra cost limits your buying power.
- Relaxed credit guidelinesVA loans have more flexible credit requirements than other loan types. You dont need top-tier credit to qualify, and its possible to bounce back faster with a VA loan after a bankruptcy or foreclosure than with other loan types. Having less-than-perfect credit is not a deal-breaker.
A good mortgage lender can help you evaluate your options and get a clear understanding of what all loan types youre eligible for and what might be the best fit for you.
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Secure A Certificate Of Eligibility
Youll need this to be eligible for your VA loan. Youll need to provide proof of your military service based on your status.
Rocket Mortgage® can help you verify your eligibility and get your certificate. VA-approved lenders, like Rocket Mortgage®, can help you get your certificate quickly with proof of service.
Tell your lender you need your certificate of eligibility early in the process so they can help you get it.
What Is A Joint Va Loan
There are lenders out there that will make a joint loan for a veteran and a non-spouse, non-veteran co-borrower. Imagine a veteran getting a loan with their brother, or a parent, or an unmarried significant other — that’s a joint VA loan.
These kinds of scenarios are absolutely possible, but they look a bit different than a typical VA purchase loan. That’s because the VA’s guaranty extends only to the veteran’s portion of the loan .
With joint VA loans, the non-veteran co-borrower will often need to make a down payment to cover their portion of the loan. Just how much depends on a few different factors, and it can get complicated in a hurry.
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Can Existing Va Borrowers Lower Their Interest Rates By Refinancing A Va Loan
On top of that, its also possible to reduce your interest rate by refinancing a VA loan through the interest rate reduction refinance loan . This loan requires you to use additional VA financing to replace your current loan and comes with an upfront VA funding fee of 0.50% of the loan amount.
In the end, the VA loan program can be a big help to those who have sacrificed their country and want to achieve the dream of homeownership.
Your Home Must Qualify For Va Loan
This is one of the harder aspects of VA loan restrictions to explain. Before you can purchase your home using VA loans, your property must qualify. The VA will send a specially appointed VA appraiser to assess the house. Here is a good breakdown of the VA property requirements but in general, your home must be a conventional home in good working condition.
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Interest Rate Reduction Refinance Loan
Interest rate reduction refinance loans , also known as VA streamline refinance loans, help borrowers obtain a lower interest rate by refinancing an existing VA loan. This is a VA-loan-to-VA-loan process that allows homeowners with an existing VA loan to refinance a fixed-rate loan at a lower interest rate or convert an adjustable-rate mortgage into a fixed-rate mortgage.
Contact Your Lender To Get Started On Your Va Home Loan Application
As a VA lender since 2011, Capital Bank has over a decade of experience with helping members of our armed forces buy their dream home. Our lenders can answer any of your questions and guide you through the VA loan process. Our own process is transparent and intuitive to provide you with the smoothest path to closing your home and getting the keys!
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