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Those who have served in the US military either currently or in the past are eligible to apply for a VA loan for their primary residence. VA loans make home ownership more affordable for service people. To obtain this type of loan, veterans must comply with the appropriate application process.
What is a VA loan?
The VA Home Loan is a program offered by the Federal Administration of Veterans Affairs to those who have served or are currently serving in the military. Although they do not provide funds for these loans, they do guarantee loans made by private lenders. This guarantee allows veterans to purchase a home with no down payment and negotiate mortgages at lower rates. It can also be used to refinance a property purchased under the VA program. Home loans for veterans under the VA program can also be used to purchase specially adapted properties for veterans with service-related disabilities. The program can also help Native American veterans purchase property on tribally owned lands.
Your Certificate of Eligibility
If the serving person is currently serving in the military, the applicant must go to their commander, personnel office, or assistant to secure a statement of service that shows the applicant’s name, social security number, date of birth, date of entry into active duty, the duration of any time lost, and the name of the commander. Eligibility is based on length of service for both active duty members and reservists. Veterans who are no longer in service must have their service history up to date. Approval is based on honorable completion of 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 does not place limits on the amount you can borrow for a primary stay, the program cannot be held responsible for mortgage amounts in excess of a service member’s due. The base benefit is set at $36,000, but that’s 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 the amount you can qualify for.
Contact a VA loan specialist
A VA loan professional can help you in several ways. He or she is a mortgage broker who can find you better interest rates, get you eligible even with somewhat meager credit, and make the whole process a lot smoother.
Apply to your lender
Once you find a suitable home, you will apply to a private lender that accepts VA loan collateral. The service member must provide a certificate of eligibility when applying for the loan. The lender may also request 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 obtain a mortgage, the lender is free to decline the loan if your credit records show payment problems. The veteran should always make sure that past debts are paid on time and in full to ensure a good credit rating. Any problems should be negotiated with the debtor before attempting to obtain a loan. A VA loan specialist can help you with that.
Your loan approval
The lender will then notify you of the approval of your loan with information about the mortgage rate. You will then be required to be at the loan closing to sign the papers before you can take possession of the property.
