VA Home Loan Information

Veterans are afforded a great deal of loan opportunities from the federal government for their service in helping to protect the United States. The VA home loan program was established to help veterans, particularly those purchasing their first home, finance an affordable home.

VA Home Loan Eligibility Requirements and Facts

In order to receive a VA home loan, an individual:

• Must be an active duty member of the military or have been honorably discharged.
• Apply for a VA loan through a mortgage lender.
• Secure a Certificate of Eligibility from the VA by completing all necessary paperwork.
• Show proof of military service, such as an original statement of service if still in active duty or a copy of DD Form 214, Certificate of Release or Discharge from Active Duty.

Other important regulations veterans should be aware of are that unmarried spouses are eligible for a loan if the veteran died during active combat or as a result of a service-related injury. However, children are not eligible for a home loan. Basic entitlement for a loan begins at $36,000, but entitlement does not guarantee that a lender will give an individual a loan. If a lender denies an individual a loan, they should seek out another lender. Also, in order to secure a VA Guaranteed Home Loan, the veteran must purchase the home for themselves and plan to live there, and the home must also be purchased in the United States.

VA Home Loan Advantages

There are several advantages to receiving and using a VA loan in order to purchase a home. These include:

• No down payment is required in most cases and closing costs may be lower – a major plus, as closing costs and down payment are the largest expenses when purchasing a new home.
• The right to prepay without a penalty.
• No mortgage insurance premiums
• An assumable mortgage – meaning that the buyer of the home can take over the mortgage should the veteran decide to sell it.
• A veteran can use a VA refinance loan to refinance an existing VA loan at a lower rate.

These are all of the factors that make VA loans an attractive option for active and honorably discharged veterans looking to purchase a home.