Access To Other Adaptation Grants
Disabled veterans may also qualify for a Temporary Residence Adaptation grant to add modifications to your property that make it easier to navigate if you live with a family member. Like SAH grants, you wont need to pay back your TRA grant, which makes them a powerful tool for veterans with mobility-related disabilities.
Property Tax Exemption
Property taxes fund things like libraries, fire departments, and local road and development projects. Disabled veterans property tax exemptions can lower the amount you must pay in property taxes.
These tax exemptions arent a federal program, and they vary by state, so check with your local VA office to learn the exemptions youre eligible for. Some states offer an exemption to all veterans, while other states limit this benefit to veterans who are currently receiving disability payments. Disabled veterans are 100% exempt from property taxes in some states.
Why Should You Buy A Foreclosed Home Despite The Risks It Might Have
Its not a secret that you will incur unpredictable expenses when you buy a foreclosed home. There may be underlying damages that can be costly if repaired. Additionally, the process of purchasing a foreclosure often requires a long period of time. Some buyers may end up turning their back.
However, despite all these risks, buying a foreclosure can still be a great deal. If you are hands-on searching, then its not impossible to find a desirable home that suits your finances and preferences. Just imagine you can have a new home by just spending below the average cost of a house!
But the advantage doesnt stop there. Here are some of the pros of buying a foreclosed home:
- The banks are willing to negotiate the price, down payment, closing costs, and escrow length. Remember, as mentioned earlier, the bank intends to lend money, not to own a property. That is why they want the foreclosures off their books.
- You will get a clear title of the house. You will not take any mortgages, liens, back taxes, or any obligation of the previous owner.
- Theres a likelihood that the value of the property will appreciate over time. When you make betterments in the foreclosed house, the market price wont be the same as when you bought it. It will definitely be higher!
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.
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Find Your Level Of Entitlement
With a second loan, your remaining entitlement, combined with your local VA loan limit, could affect your price range as we described above. Its good to know right away what loan size you can get, especially if youre counting on making no down payment.
If you already have a VA loan that hasnt been paid off, youre using a portion of your entitlement, and your second home loan amount could be limited.
Details about your entitlement should be listed on your current Certificate of Eligibility. You can get your COE with help from a VA lender if necessary.
Other Types Of Help If Youre Homeless
Visit Benefits.gov to find out if youre eligible and how to apply for other types of help. This may include financial assistance, transportation, food, counseling, and more.
If you dont have medical insurance, you can use HRSA health centers. They give checkups, treatment when youre sick, pregnancy care, and immunizations for your children.
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Property Options With A Va Loan
The VA home loan program offers a multitude of benefits to homebuyers looking for a new home. These benefits include zero down payment, low-interest rates, and no mortgage insurance.
While it might seem like you dont have many options when it comes to purchasing a home, most houses in the nation are VA eligible so you can take advantage of the VA loan program and become a homeowner.
Please contact our support if you are suspicious of any fraudulent activities or have any questions. If you would like to find more information about your benefits, please visit the Official US Government website for theDepartment of Veteran Affairs or the US Department of Housing and Urban Development.
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How Many Va Loans Can You Have
Having more than one VA loan at the same time is possible, provided certain rules are followed.
Case in point: Assume you currently own a primary residence financed by a VA loan. However, you receive orders for a permanent change of station that requires you to move to a new location.
In this instance, you could keep your first home and rent it out, which would require proving that you earn rental income,â Gelios said. âThat rental income could help you qualify for a new second VA loan that you use to purchase your next home in your newly assigned location.â
Alternatively, you may be allowed to retain ownership of the first home without having to rent it out, and be permitted to get a second VA loan for home No. 2 that will serve as your new primary residence. This can occur, for example, if you experience difficulty trying to sell your first home.
For this to be possible, you would need to ensure you have enough entitlement benefits and that you could also be approved for the new property while still carrying the other VA mortgage loan on the first home, Killinger said. The amount you could borrow for home No. 2 would also be limited if you opt not to put any money down using your second VA loan.
But aside from these exceptions, you would typically need to pay off your first VA loan on home No. 1 before applying for a subsequent VA loan on another property.
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What Is A Va Home Loan
VA home loans provide the means for eligible U.S. veterans, current service members and surviving spouses to purchase or build a home, finance home improvements or refinance a mortgage. Loans may be issued directly by the U.S. Department of Veteran Affairs, or they may be secured through a private lender with VA backing.
How A Va Loan Works
VA loans help active service members, veterans, and their surviving spouses become homeowners. They provide up to 100% financing on the value of a home. Eligible borrowers can use a VA loan to purchase or build a home, improve and repair a home, or refinance a mortgage.
The VA sets the qualifying standards, dictates the terms of the mortgages offered, and backs the loan, but doesnt actually offer the financing. Instead, VA home loans are provided by private lenders, such as banks and mortgage companies.
When borrowers apply for a loan, they need to provide the lender with a certificate of eligibility from the VA. To get the certificate, youll have to produce service-related documentation, which can vary based on whether you are active duty or a veteran. The certificate can be obtained from the VA website. Although some of the lenders own underwriting requirements still must be met, in most cases, VA loans are easier to qualify for than conventional loans.
VA loans, Federal Housing Administration loans, and other loans insured by departments of the United States government have securitization through the Government National Mortgage Association , also known as Ginnie Mae. These securities carry the guarantee of the U.S. government against default.
Borrowers can apply for a VA loan more than once, but the funding fee increases when using a VA loan after your first time if the down payment is less than 5%. Fees range from 1.4% to 3.6% of the loan amount.
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Which Loan Type Is Right For You
When deciding which type of VA loan is right for you, its important to understand how each one works and figure out how they match up with your situation. Nordman recommends sitting down with a mortgage broker who has knowledge of the VA Lenders Handbook to help you work out whats best for your situation.
Buying A Condo With A Va Loan
The VA maintains a list of approved condo projects within which you may purchase a unit with a VA loan.
At VAs website, you can search for the thousands of approved condominium complexes across the U.S.
If you are VA-eligible and in the market for a condo, make sure the unit youre interested in is approved.
As a buyer, you are probably not able to get the complex VA-approved. Thats up to the management company or homeowners association.
If a condo you like is not approved, you must use other financing like an FHA or conventional loan or find another property.
Note that the condo must meet FHA or conventional guidelines if you want to use those types of financing.
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The Vas Occupancy Rules
The occupancy requirements are fairly straightforward. As stated by the VA, the law requires a veteran obtaining a VA-guaranteed loan to certify that he or she intends to personally occupy the property as his or her home.
Basically, anyone getting the loan must live in the home, ruling out renting the property, using the building exclusively for work purposes or allowing friends or non-eligible family members to live there.
Also, occupancy must be met within reasonable time, which in most cases means 60 days. So, a home buyer must move into their new home within 60 days of the mortgage closing. They must also prove that the home is their primary place of residence.
These rules only apply for VA loans, though. For IRRRLs, the VA says that a homeowner must only prove that they have been living in the home. This makes occupancy for a VA refinance much less of an issue than for VA home loans.
What Is My Entitlement
Your Entitlement is the amount of money the VA is willing to guarantee on your behalf to a private mortgage lender. The VA offers a basic entitlement of $36,000 to each Veteran. A lender is usually willing to loan you up to four times that amount or $144,000. If something happens and you are unable to pay back the loan, the VA will pay 25% of your loan to the lender as a guarantee. However, in many places across the country, its difficult to find a suitable home for $144,000. To ease this problem, the VA decided to link the amount it guarantees to the conforming loan limit for conventional financing as stated by the Federal Housing Agency . Doing that increased the amount available to veterans looking to buy a home. In most counties across the country, the VA will back 25% of your home loan, up to a maximum loan amount of $484,350 . In other words, if you finance a $250,000 home in a county with a limit of $484,350, you are only using a little over 50% of your entitlement.
The VA loan entitlement is yours for the duration of your life. It never expires, and you can use all of it or just some of it. You can even borrow more than the loan limit of $484,350, but most lenders will require some sort of down payment since the VA only backs 25% of the loan limit. Being able to use your benefit over and over is based on how much of your entitlement is available to you, and the reasons behind your wanting to use it again.
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How Long Does It Take For Va Loans To Close
The standard length of time for the mortgage industry for most VA loans is around 40 to 50 days. So, whether you use NADL or VA-backed loans, you can anticipate the closing between this period.
There is no specific length of time for the VA loan to close because all lenders have different time-frames. But you can inquire with your lender about their specific closing turn-times. So that you know until when you need to wait and expect your VA loan.
How Many Va Loans Can I Have
The VA home loan benefit for military service members is renewable. You can use it throughout your life as a perk of military service. But having more than one VA loan at a time stretches the entitlement and can limit its power. Depending on your areas conforming loan limits and the size of your existing loan, your second loan may require a down payment.
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How Can I Restore My Va Entitlement
You can request a restoration of entitlement under certain circumstances, including:
- The original home was sold and the VA loan repaid
- An eligible veteran has agreed to assume the original loan amount, substituting his or her entitlement for yours, and will meet the VAs occupancy and income requirements.
- A cash-out refinance, in which the VA loan is paid in full
- A one-time restoration, in which the loan was paid off, but the property was not sold
If youre eligible for restoration, youll need to submit Form 26-1880 to the VA . If you are already working with a lender, they will help assist you with this step to ensure it is done properly.
Native American Direct Loan
Helping Native Americans buy, build, improve or refinance homes on federal trust land is the goal of the Native American Veteran Direct Loan program. The program is available to members of certain Native American tribes and their spouses, as well as Alaska Native corporations and residents of Pacific Island territories.
To get started, confirm that your native community participates in the NADL program, apply for a VA certificate of eligibility and contact the VA regional loan center for your state.
About the authors:Hal Bundrick is a personal finance writer and a NerdWallet authority in money matters. He is a certified financial planner and former financial advisor. Read more
Barbara Marquand writes about mortgages, homebuying and homeownership.Read more
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Undergo Va Appraisal And Underwriting
Underwriters from your lender assess your finances and make sure you qualify for a VA loan. The VA will also require an appraisal before they approve the loan. VA appraisals are stricter than conventional loans. During a VA appraisal, the appraiser will check that the home meets the VAs MPRs and is sanitary, structurally sound and move-in ready with minimal repairs.
Va Loan Eligibility Is Earned
Most service members are told that they will be eligible for a VA loan if they stay in long enough. Generally, service requirements are as follows:
- 2 years for regular service members
- 6 years for Reservists and National Guard members
- 90 days active duty during wartime
- 181 days active duty during peacetime
Are You Eligible for Home Loan Benefits?
If you’re not sure if you meet these requirements, don’t worry! You may still be eligible for a VA loan.
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How Many Times Can I Use A Va Loan
VA loans are not a one-time benefit you can use them multiple times so long as you meet eligibility requirements. You can even have multiple VA loans at the same time. Heres how it might work:
You sell your home and pay off the existing VA loan. Then you can either restore your entitlement or use your remaining entitlement to cover a new VA loan.
You can keep your current home and rent it out as an investment property. You could buy a second home using your remaining entitlement. This results in having two VA loans outstanding at the same time.
Youve repaid your previous VA loan in full but kept the sold the home you bought with it. In this case, you restore your entitlement, but you can only do this one time.
How Do Va Loans Work
Basically, you fill out paperwork from the VA that verifies your eligibility for the program. You also receive whats known as your entitlement, which is the dollar amount guaranteed on each VA loan. Lenders might be willing to loan up to four times the amount of your entitlement.
With all of that in place, its possible to get a VA loan with no money down. VA loans also dont require private mortgage insurance , but you will pay a VA funding fee when you close, which will be a percentage of the loans total value. That fee helps keep the program running for future borrowers.
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Follow Through Until Closing
It could take six to eight weeks to go through the full underwriting process. Your lender will check out your personal finances. Your VA appraiser will check out the home youre buying to make sure it meets the VAs Minimum Property Requirements. An attorney will do title work to make sure you can legally own the home.
During this time, be sure youre responding to your loan officers questions and providing any documentation thats requested. Your loan officer should schedule a closing day and time.
Keep in mind youll face a higher VA Funding Fee of 3.6% upfront since this is your second use of your VA home loan benefit.
