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Do Reservists Qualify For Va Loans

Do Reservists and National Guard Qualify For VA Mortgage Loans?……..Here’s What You Need To Know

May 28, 2020 By PrimeLending: Manhattan, Kansas

Do reservists qualify for VA loans? Over the years, the home loan program run by the U.S. Department of Veterans Affairs has helped numerous active-duty service members and veterans become homeowners. Many people are aware that the programs home loan guaranty benefit is one that is earned through service. However, the fact that different types of service count isnt as widely known. As a result, many people who could potentially use a VA loan including some reservists dont realize that theyre eligible.

Hud Good Neighbor Next Door

Through the United States Department of the Housing and Urban Development , firefighters can receive literally 50% off their homes listing price. And if it sounds too good to be true, there are some requirements that may be too restrictive for you or your situation.

To qualify for HUD Good Neighbor Next Door Program, you must:

  • Be a paid firefighter
  • Buy in a revitalization area that is designated by HUD
  • Select a home from HUDs listings, which often comprise of foreclosures
  • Live in the house for three years

While these may seem restrictive to some, the money saved may be worth it for others. You could save that money for a newer home down the line, and three years may not mean much in terms of commitment.

Eligibility Requirements For Va Home Loan Programs

Learn about VA home loan eligibility requirements for a VA direct or VA-backed loan. Find out how to apply for a Certificate of Eligibility to show your lender that you qualify based on your service history and duty status. Keep in mind that for a VA-backed home loan, youll also need to meet your lenders credit and income loan requirements to receive financing.

Recommended Reading: Nslds.ed.gov Legit

Senators Moran Tester & Tillis Introduce Bill To Expand Va Home Loans For National Guard

MANHATTAN U.S. Senators Jerry Moran , Thom Tillis and Jon Tester introduced bicameral legislation to expand VA home loan benefits to National Guard & Reserve members by crediting service under federal Title 32 orders of the United States Code toward home loan eligibility requirements. Currently, members of the National Guard and Reserve are only eligible for the VA home loan program if they have had 90 consecutive days of active service under orders authorized by Title 10 of the U.S.C. or if they completed six years of honorable service.

As of July 1st, more than 37,100 National Guard members are supporting domestic operations across the United States in response to COVID-19, social unrest, and weather-related disasters. This bill has been endorsed by the National Guard Association of the United States and the Enlisted Association of the National Guard of the United States.

Members of the National Guard and Reserve are always ready to support our communities when a disaster strikes and are currently working to help stop the spread of COVID-19. However, this service does not count towards eligibility for one of the most popular benefits offered by the Department of Veterans Affairs, the Home Loan Guaranty benefit,said Sen. Moran.This legislation would expand home loan guaranty eligibility for members of the Reserve Component and grant them greater access to homeownership to live the American dream after service.

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See What You Qualify For

VA Loan Eligibility

Answer a few questions below to speak with a specialist about what your military service has earned you.

Tim Alvis is a residential mortgage loan originator at Veterans United Home Loans and a previous credit expert in the Lighthouse Program. Tim has helped hundreds of veterans and service members with their credit and financial profiles to help them go on to secure the home loan they deserve.

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Confirming Va Loan Eligibility

As the above section illustrates, the VA loan eligibility criteria for National Guard and Reserve members are fairly straightforward. But, the next question these members ask is: now that I know Im eligible, how do I actually document my VA loan eligibility?

To demonstrate to lenders that you have your VA loan eligibility, you need to request your Certificate of Eligibility, or COE, from the VA. The procedures to request this form depend on how you earned your eligibility.

If you are a current or former National Guard or Reserve member who activated, youll need a copy of your discharge or separation papers, that is, your DD-214.

If you are a current National Guard member who never activated, youll need a statement of service from your commanding officer, adjutant, or personnel officer showing the following information:

  • Your full name
  • The date you entered duty
  • Your total number of creditable years of service
  • The duration of any lost time
  • The name of the command providing the information

If you are a discharged member of the National Guard who never activated, youll need the following information:

  • Your Report of Separation and Record of Service for each period of National Guard service, and
  • Your Retirement Points Statement and proof of the character of service

If you are a discharged member of the Reserves who never activated, youll need the following information:

  • A copy of your latest annual retirement points, and
  • Proof of your honorable service

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:

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Transition Assistance Advisor Program

The Transition Assistance Advisor program is a partnership between the National Guard and VA to assist Veterans. The TAA Program, housed within the National Guard Office of Warrior Support, places an NG/VA trained expert at the NG Headquarters in each of the 50states as well as PR, GU, VI, and the District of Columbia. The advisor serves as an advocate for Guard members and their families, as well as other geographically dispersed military members and families.

In collaboration with state and local coalition partners, the TAA Program provides VA benefit enrollment assistance, referrals, and assists in facilitating access for Veterans through the overwhelming maze of programs, with the compassion of someone who knows what it is like to transition from the Guard to active duty and then back to civilian status.

Advisors receive annual training from VA experts in VA health care and benefits to assist Guard members and their families with access to VA health care facilities and TRICARE facilities within their network. To find a local Transition Assistance Advisor call 1-877-577- 6691 or go to www.taapmo.com.

Approval Is Easy With Our Tactical Va Loan Blueprint

VA Home Loan – US Veteran, Active, Reserve, Military Spouse, PROS/CONS – How VA Loans Work

If youre a current or retired military member looking to buy a home and choose to take advantage of the VA Loan program, you may be wondering the best mortgage company to go with.

Be very careful here as any mortgage company can offer a VA loan, but few of them specialize in VA loans, and there are a lot of ways lenders can screw up your dream of owning a home.

The Wendy Thompson Lending Team is one of the top ranked VA Loan and Mortgage specialist working with active military and veterans in all of the 50 States.

Unique only to the Wendy Thompson Lending Team is our easy 3 step plan:

Dont make that mistake, contact the Wendy Thompson Lending Team today!

You can start the process by clicking the yellow ‘See if I’m Eligible’ button on the right side bar under the ‘Start your quote for VA Home Loan’ or call Wendys Team directly at 250-2294, to get started on living the American Dream in the home of your Dreams!

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What Is The Minimum Credit Score For A Va Loan

The majority of mortgage lenders require borrowers to have a credit score of 620 or higher. If your credit score is lower, you can still get approved by some lenders, but they will generally require you pay a higher interest rate. When you apply for the VA loan, you need to prove to the lender that your current income will allow you to pay off your fees in a timely manner.

This assures the lender you will ultimately pay off the loan without incurring debt. Despite these thresholds, the lender requirements are generally less stringent than if you applied without a VA loan.

Other Va Loan Requirements For Borrowers

While qualifying for the home loan guaranty benefit is a must if you hope to fund your home purchase with a VA loan, doing so is not enough to secure the loan. You must also show that you have the credit and income to qualify for the loan that youre requesting. As NerdWallet explains, your lender will review your credit history, debt-to-income ratio, and overall financial situation to determine whether you qualify for a loan and what terms youll be offered. Your lender will also confirm that you intend to use the home as your primary residence and that it meets the VAs Minimum Property Requirements. These requirements are designed to ensure that any property purchased with a VA loan is safe, sanitary, and structurally sound.

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If you have questions about whats involved in qualifying for VA loans, turn to the loan experts at PrimeLending: Manhattan, Kansas. We have an assortment of loan products that allow us to meet the needs of diverse borrowers, and the expertise to help you confidently reach your housing goals. Contact us today to learn more about our products and services and discover how we can help you succeed in making your dream home a reality.

Recommended Reading: Does Va Loan Work For Manufactured Homes

Can I Get A Certificate Of Eligibility For A Va Direct Or Va

You may be able to get a COE if you didnt receive a dishonorable discharge and you meet the minimum active-duty service requirement based on when you served.

When did you serve? You meet the minimum active-duty service requirement if you served for at least this amount of time:
When did you serve? Between August 2, 1990, and the present You meet the minimum active-duty service requirement if you served for at least this amount of time: 90 days of active-duty service
When did you serve? Any time period You meet the minimum active-duty service requirement if you served for at least this amount of time: 6 creditable years in the Selected Reserve or National Guard, and one of the descriptions below is true for youAt least one of these must be true. You:

  • Were discharged honorably, or
  • Were placed on the retired list, or
  • Were transferred to the Standby Reserve or an element of the Ready Reserve other than the Selected Reserve after service characterized as honorable, or
  • Continue to serve in the Selected Reserve

Who Is Eligible To Receive A Va Loan

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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Paying The Funding Fee

Another major difference between the VA loan for active duty military and military Reservists is the funding fee you will pay. Active duty personnel pay 2.15% of the loan amount for a home purchase. Those in the Reserves pay 2.4% of the loan amount.

Lets look at how this differs on a $150,000 loan:

  • Active duty personnel would pay $3,225
  • Reservists would pay $3,600

Its not a huge difference, but its worth mentioning.

Can I Lower My Monthly Hoa Fee

Yes, you can! All you have to do is keep your self informed and involved in your housing community. As a homeowners association member, you have access to some of the HOAs financial records. You may have the right to review the associations budget, contracts, yearly revenue, reserve fund balance, recent assessments, and any pending legal matters. To make sure you arent paying more than is necessary to the association, familiarize yourselves with these documents. Take it a step further and join your local homeowners association board this will give you power to make serious changes where they are needed and save yourself and other residents lots of money. You can help cut costs, evaluate insurance premiums, sift out essential maintenance from non-essential maintenance, and even reduce the amount of reserves if necessary.

HOA dues are just one of them any things youll want to consider when looking to purchase a home. To choose the best possible course for you and your family, sit down with a professional you trust and let them help you make educated decisions. Our loan officers at Low VA Rates are anxious to help you save money on decent, affordable homes.

Also Check: Nslds Ed Gov Legit

How Do I Apply For A Va Loan And What Are The Requirements

Veterans and active members of the United States armed services do a great service for their country, and in return, they deserve our nations respect and recognition. One way to display this appreciation is through programs granting benefits to these brave men and women.

The veterans loan program provides veterans and active duty service members an achievable path to homeownership. VA loan guidelines offer veterans as well as many members of the U.S. military and their surviving spouses the opportunity to apply for home loans that do not require down payments. Through these programs, they can achieve their dream of homeownership.

Are you a veteran, armed service member or spouse of a veteran or armed service member? Then you may qualify under the veterans loan program requirements.

What Are Other Va Loan Eligibility Requirements

VA Loan First Time Home Buyer – VA Loan Explained

Even though the requirements for VA loan eligibility are basic and accommodating, a private mortgage lender who finances the purchase of your first home might have a different set of requirements. Some lenders, for example, require all applicants to have good credit when applying for a mortgage.

These same lenders might also require you to meet a minimum income level or hold a job for some length of time before qualifying you for a mortgage. During the application steps for the VA loan, a mortgage broker might examine your credit score and your debt-to-income stats.

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What Are The Va Loan Requirements

A VA loan can only be used to finance the purchase of a home that will serve as your primary address. VA loans cannot be used to finance the purchase of secondary properties and vacation homes. The VA will only accept a certain level of liability for your borrowing. Liability limits vary by zip code and the value of properties in a location.

Where Do I Get Form 26

Whether you are or were active duty, a veteran, National Guard or Reserves, everyone must obtain Form 26-1880 which is more commonly known as the department of veterans affairs certificate of eligibility request form.

The easiest place to obtain the form 26-1880 is from the VA’s website.

This form is in PDF format and can actually be filled out right on the website and downloaded or printed from there.

It is super easy to access and includes a lot of instructions and frequently asked questions to assist you in the process.

Plus, we’ve reviewed many of the steps you will need to take in this article so you should be pretty prepared.

But wait!

If you contact the Wendy Thompson lending team, they will do all of this for you!

Say what?

That’s right, part of the obtaining a VA home loan through the Wendy Thompson lending team is that they make the entire process as seamless and easy as possible.

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How To Become Eligible For A Va Loan

Lets dig into this in a bit more detail. Individuals who have served in the Army Reserves or the National Guard may still obtain a VA home loan. These loans are put in place to help service members and Veterans purchase a primary residence. Below are the requirements to meet in order to qualify for a VA guaranteed home loan. You must meet at least one of the below:

  • Serve at least six full years in the service or in the Selected Reserves AND
  • Were discharged honorably OR
  • Placed on the retired list OR
  • Moved to the Standby Reserves or an element of Ready Reserves other than the Selected Reserve after service characterized as honorable OR
  • Continue to serve in the selected Reserve longer than six years OR
  • Served 90 days or longer during active duty during a wartime period OR
  • Were discharged from active duty for a service-related disability

If you meet the requirements above, you will be issued a Certificate of Eligibility from the office of the VA. You must provide this to your lender in order to obtain a VA mortgage. There are times where we will need to help you obtain your Certificate of Eligibility. Please see our COE BLOG for more details.

At Gustan Cho Associates, we have closed and funded many VA-eligible clients. Most of the time, a VA loan is the best loan available. Mainly due to no down payment requirement and no monthly mortgage insurance.

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