All About VA Loans

Not everyone qualifies for a VA loan. However, if you are one of those who can take advantage of this, it is best to know everything you can. This way, you can fully benefit from it. Some of the things you might want to understand are what VA loan is about. Who can use it and how can one qualify?

What is VA loan?

VA loan is mortgage that is partially guaranteed by the US Department of Veteran Affairs. Those who are qualified can borrow from the lenders, authorized by the Veterans Administration. This can be used to refinance an existing loan or to renovate the property. However, this is normally used by borrowers to purchase a home.

Who qualifies for the VA loan?

We now know that VA loan is not for everyone. Since this is the case, we want to know who can benefit from it. As the name suggests, this type of loan is available to veterans. However, they have to qualify. First, they need to have served during the World War II. If they have served during the wartime, they should have served for at least 90 days. However, if they have served during the peacetime, they should have served for at least 181 days. Only the veterans who were discharged honorably are qualified for such loan.

Surviving spouses of qualified personnel who died in a service-related incident may also avail of the loan, provided that they did not remarry. Additionally, the Reserves and National Guard will also qualify if they have rendered at least six years of service.

How to apply for VA loan?

The first thing you need to do is to get a Certificate of Eligibility. You can avail of one by filling in the VA form 26-1880. You can send your request for the certificate of eligibility to a VA Eligibility Center near you. You should also present the supporting documents, which includes the most recent separation papers. If you do not have those, you can still pass your application. the eligibility center can establish the link for you. However, expect to have a longer processing time.

Once you have the certificate, the rest of the steps are very similar to applying for a regular mortgage. You will need to find the house you want to purchase. After that, you need to request the VA for an appraisal. After signing the purchase agreement, finalize your VA loan application and close the deal.

You can borrow up to 100% of the property’s value. However, you need to keep in mind that the lender will still consider your assets, credit and income. So make sure that you have a good credit. Most veterans have already used VA loan. However, you can still use it for your next purchase, with a few things to consider. Talk to VA loan administrator for more information.

Those who qualify for a VA loan can fully benefit from this if they have all the essential information about VA loan qualification and application. If you think you qualify, do not hesitate to inquire. You will be thankful you did.

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