How to Get a VA Home Loan
Real EstateThose who have served in the United States military, either currently or in the past, are eligible to apply for a VA loan for their primary residence. VA loans make homeownership more affordable for service people. To acquire this type of loan, veterans must comply with the due application process.
What is a VA loan?
A VA home loan is a program offered by the federal Department of Veterans Affairs for those who have served in the military or are currently serving. Although they do not provide the money for these loans, they do guarantee the loans made by private lenders. This guarantee makes it possible for veterans to buy a home with no money down and negotiate mortgages at lower rates. It can also be used to refinance a property that was purchased under the VA program. Veterans home loans under the VA program can also be used to purchase properties specially adapted for veterans who have service-connected disabilities. The program can also help Native American veterans purchase property on tribal land.
Your Certificate of Eligibility
If the service person is currently serving in the military, the applicant should go to their commanding officer, personnel office, or deputy to obtain a Declaration of Service showing the applicant’s name, social security number, date of birth, date of entry into active duty, length of time lost, and name of commander. Eligibility is based on length of service for both active duty and reservist members. Veterans no longer in the service must have their Service Record. Approval is contingent on honorable discharge from military service. Once the information is verified, the Department of Veterans Affairs will issue the Certificate.
Select your property
The applicant can then start looking for suitable properties to buy. Although the VA sets no limits on the amount you can borrow for a primary residence, the program cannot assume responsibility for mortgage amounts in excess of a servicemember’s entitlement. The basic entitlement is set at $36,000, but that is not the maximum. The upper limit of this loan is determined by the location of the property you intend to purchase and can be several hundred thousand dollars. A loan specialist can help you determine how much you may qualify for.
Contact a VA Loan Specialist
A VA loan specialist can help you in many ways. He or she is a mortgage broker who can find you better interest rates, qualify you even with sketchy credit, and make the whole process so much easier.
Apply to your lender
Once you’ve found a suitable home, you’ll apply to a private lender that accepts VA loan guarantees. The service member must provide the Certificate of Eligibility when applying for the loan. The lender may also require a Statement of Service, which serves as verification of employment in the military. Military veterans may be asked for records of retirement benefits or other sources of income.
Your credit history
Although your Certificate of Eligibility can help you secure a mortgage, the lender is free to deny the loan if your credit records show payment problems. The veteran should always ensure that past debts are paid on time and in full to ensure a good credit rating. Any problem must be negotiated with the debtor before trying to obtain a loan. Your VA loan specialist can help you with that.
Approval of your loan
The lender will then notify you of your loan approval with information about the mortgage rate. You will then be required to be present at the loan closing to sign paperwork before you can take possession of the property.