0
0
Mortgage loans secured by the U.S. Department of Veterans Affairs have been a popular way for veterans and active duty members to purchase their first homes for more than 70 years. Since home loans are secured, many lenders are eager to offer veterans low-cost home loans. Although the application process is not difficult, it is somewhat different from that of traditional loans, and many lending institutions have specially trained departments or staff to assist with the required documentation.
eligibility
If you have been a member of the military on active duty for at least 90 days, you are eligible for a VA-secured mortgage. Likewise, veterans who have served between 90 and 181 days of continuous service, depending on the time period, are eligible to apply for these loans. National Guard service members also qualify for a home loan if they are currently serving or have served six years, are discharged or are on the retired or reserve list. Under certain circumstances, spouses of military members may also be eligible for a VA loan.
Certificate of eligibility
Applicants are required to document their service in the military with a Certificate of Eligibility. Certification is issued with a number of different types of proof:
-
DD Form 214 for Veterans indicating nature of service and reason for dismissal
-
For current service members, a current service statement signed by the unit commander, adjutant, or office of personnel
-
For current National Guard members, a signed statement of service from the unit commander, adjutant, or personnel office
-
For discharged National Guard personnel who have never been activated, NGB Form 22, Dismissal Report and Service Record
-
A surviving spouse who does not receive benefits must file VA Form 21-534
-
The surviving spouse receiving benefits must file VA Form 26-1817
additional requirements
In addition to the Certificate of Eligibility, applicants for a VA secured mortgage loan must submit:
-
Documenting sufficient income to afford the loan installments
-
Good credit history – VA lenders set minimum credit history requirements for a loan
-
Evidence that the property can be occupied – VA loan benefits must go to properties suitable for occupation, such as single-family homes, condominiums, townhouses, and multi-family residences.
-
Intent to Occupy – First time home loan applicants must confirm their intention to occupy the property.
-
Property appraisal to ensure that the property is adequately appraised for the loan amount.
Sale close
Applicants are encouraged to compare loans from a number of lenders to ensure the best terms. After an applicant is approved for a VA secured mortgage loan, he or she must close the sale of the property, provide evidence of homeowners insurance on the property and pay closing costs. These closing costs are regulated by the VA. The title is then issued and insured by a title insurance company to prevent any further claims on the property.
Although the process may seem daunting to first-time borrowers, lending institutions have created protocols for VA loans that ease the application process so that veterans and active duty members can take advantage of this valuable feature.
