Getting Started with Your VA Loan

A VA-guaranteed loan is a fabulous benefit offered to hard-working men and women who have served or are serving in the U.S. military. Some of the benefits available only through a VA loan includes the opportunity to refinance your home up to 100 percent of its value, and purchase a home with no down payment.

A VA loans also eliminates the  private mortgage insurance premium requirement and limits the amount you can be charged for closing costs. The seller also can pay your closing costs. VA-backed loans can't charge you a penalty if you pay off your loan early. Also, the VA may be able to help if you find yourself struggling to make payments. 

You can use a VA-backed loan to:

• Buy a home, a condominium unit in a VA-approved project
• Build a home
• Simultaneously purchase and improve a home
• Improve a home by installing energy-related features or making energy efficient improvements
• Buy a manufactured home and/or lot.

The one cavet is that the home must be for your own personal occupancy.

To qualify for a VA loan, you have to prove that you meet one of the following requirements:

• Served 181 days during peacetime (Active Duty)
• Served 90 days during war time (Active Duty)
• Served 6 years in the Reserves or National Guard
• Be the surviving spouse of a service member who was killed in the line of duty.

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To show that you are eligible for a VA loan, you must get a Certificate of Eligibility (COE) or Form 26-1880 from the Veterans Association.  The documents you need to request the COE depends on the category of your eligibility. Click here for a list of documents you'll need.

There are three ways to apply for the COE - online, via snail mail or through your lender. If you apply directly, it could take up to six weeks before you get a response, so make sure you request the certificate very early in your home search.

You also have to suitable credit and sufficient income as well. Though there are some exceptions, the VA will guarantee up $417,000. Your lender can help you determine your loan amount.

While VA loans require no down payment, borrowers do have to pay a funding fee. This fee, which can be as high as 3.3% is based on how much you do put down, whether this is your first or subsequent VA loan and whether you're regular military or reserve/National Guard. These fees are waved for vets classified as disabled by the VA.

If you're a veteran or an active service member, let me help guide you through the entire homebuying process. I can refer you to mortgage professionals who can help you find the best VA lender to help you meet your needs. Want to know more? Drop me a email now.