Who would qualify for a VA home loan?
A VA loan is comparable to a FHA loan. The VA loan is a guarantee to any home lending bank or company by the Veterans Administration.
This says that if the bank or mortgage company grants a loan to a person who is or has been affiliated with the United States Military Services a certain amount of that loan will be guaranteed. The FHA does issues the same type of guarantee for people that have not been the service.
What this is saying is that if a person who is granted a loan with a VA certification, the bank will be guaranteed a certain amount of money as payment in the event the buyer defaults on the loan. The amount of the entitlement or guarantee may vary depending on how much the property was valued at.
Generally the VA will guarantee 50% of the original mortgage amount up to $45,000. For homes $45,000 through $144,000, the amount guaranteed will be around 40%. 25% of the loan is guaranteed for homes above $144,000, with the maximum loan being around $417,000. The VA will not guarantee loans at a higher value.
There is a 2.15% lenders fee that the veteran must pay to the VA. For National Guard and Reservist the lending fee is 2.75%. There is a 3% lending fee if you are using your entitlement for the second time. These fees can be reduced by having a down payment of 5-10%.
Other fees that may occur during the loan process may include a closing cost, loan origination fees, VA appraisal fee, discount points, title and insurance research, and the buyer’s credit report. These fees may be paid by the veteran, seller of the property, or shared by both. They can’t be included in the amount of the loan. The loan company can’t charge the veteran a mortgage or brokerage fee.
Who may qualify for the VA mortgage loan?
WAR TIME
Veterans who have 90 days if active service and have an honorable discharge.
WWII veterans who served from September 16, 1940 through July 25, 1947
Korean War veterans who served from June 27, 1950 through January 31, 1955
Viet Nam veterans who served from August 5, 1964 through May 7, 1975
PEACE TIME
A veteran that has served 181 days of service and honorably discharged
A veteran that has served less than 181 days but has a medical discharge with a service connected disability
July 26, 1947 through June 26, 1950
February 1, 1955 through August 1, 1964
If you have peace time service from
May 8, 1975 through September 8, 1980 (for enlisted men)
May 8, 1975 through October 16, 1981 (for officers)
Servicemen and officers with an honorable discharge who have served for 181 days or 24 months
Servicemen and officers who have served 181 days that have been discharged under Hardship, Early Out, of a service connected disability
Military personnel who have been discharged with less than 181 days due to involuntary reduction in the force, or the convenience of the government
Personnel with a less than 90 days with a service connected disability
Gulf War
Benefits for the period of August 2, 1990 through current date have not been determined
You must have an honorable discharge, served 181 days of service, and have had to be called to serve for at least 90 days.
You must have served at least 90 days and have been discharged under Hardship, Early Out or a service connected disability.
You may have less than 90 days of service with a service connected disability.
You may have been discharged with less than 90 days due to involuntary reduction in the force, or the convenience of the government.
Currently on Active duty
You must have at least 180 days of active duty (90 days during Gulf War) or having a discharge or separation from a previous discharge.
National Guards and Selected Reserves
If you do not have previous eligible service, you must have 6 years of active duty in the National Guards or Reserves.
You must have been honorably discharged, retired, transferred to Standby, or be a part of the Ready Reserve other than the Selected Reserves.
You may have less than 6 years of service if you have a service connected disability.
Other individuals that who may be eligible
Public health officers,
Cadets who are at the United States Military academy, Air Force, Coast Guard academy, midshipmen at the Naval academy
Officers of National Oceanic, Atmospheric Administration, Merchant Seaman with WWII service and others
Spouses of veterans
The spouse of a veteran missing in action or prisoner of war
Unmarried spouse of a veteran who died in action or has a service connected disability
A spouse who has remarried and reached the age of 57, on or after December 16, 2003 may qualify for benefits.
To apply for a VA loan:
call your local Veterans Administration office
You can use this site to order a VA form 26-1880
www.va.gov/vaforms/form_detail.asp?FormNo=26-1880
You can apply for a Certificate of Eligibility by submitting a completed VA Form 26-1880 to,
Department of Veterans Affairs
Winston-Salem Eligibility Center
P.O. Box 20729
Winston-Salem, NC 27120