Last Monday was Veterans Day and coincidentally I received a couple of loan inquiries from honorable discharged veterans. One of the realtors I work with also asked me if I could assist with VA loans.
Yes, I CAN!! There are two major factors when one is interested in VA loans, first being whether you’re eligible and second how much of a home you can afford.
The benefits of a VA Guaranteed loan are many and include:
- NO down payment
- NO mortgage insurance
- Reusable (you can apply more than once)
- A one-time VA funding fee (exempt with one receiving VA disability compensation)
- Can be assumed by qualified persons
Unlike traditional loans, the VA has residual income guidelines, which ensure veteran borrowers can afford the loan. In other words, the guidelines state that a veteran must have a certain amount of money left over after all debts and livings expenses are considered.
The new Blue Water Navy Vietnam Veterans Act starts this January and will expand the maximum dollar amounts for; purchase, construction, and cash-out (equity-out) refinance loans, closing after January 1, 2020. For more detail information, please check https://www.benefits.va.gov/homeloans/documents/circulars/26_19_23.pdf
To get started a loan mortgage originator will ask you to provide a military service record (DD214). You can request a copy from the VA (https://www.va.gov/records/get-military-service-records/) if you are unable to locate yours. This form is a verification of military service for benefits, retirement, and membership in VA organizations. It will show proof of the record of services or in the case of active duty members, a current statement of service.
Next, service members should procure or apply for a Certificate of Eligibility (COE). In some cases, you can get your COE through the lender using the VA’s Web LGY system. Another way is to request it by mail. The form and more detailed information can be found on the VA’s website (https://www.va.gov/housing-assistance/home-loans/how-to-apply/).
It’s critical to review all the details if you are getting a VA-guaranteed loan. The funding fees will vary if this is the first time applying for VA purchase loan or a subsequent use of VA loan. If you are looking to refinance your VA financed home without getting equity out, the process can be even simpler.
Give me a call today to answer your questions.
