VA Loan

What is a VA Home Loan?

VA loans are backed by the government and provided by private lenders with more favorable terms than other standard products offered. The VA guarantees a portion of the loan if it goes into foreclosure; with protection from more risk, it allows the lender to offer a product with unique benefits. You will still need sufficient credit and income requirements set by your lender to qualify, but guidelines are more flexible. With a mission to serve, VA loans are specifically for veterans, current service members, and surviving spouses.



Eligibility:

Regardless of your current military status, every VA loan requires a Certificate of Eligibility to ensure you are receiving the appropriate benefits. You may qualify if you have completed one or more of the following: served 90-consecutive days of active duty, 181-days of active duty during peacetime, 6-years of service in the national guard or reserves, or you are the spouse of a service member who died in the line of duty.1 Depending on your current military status, there are different documentation requirements. Find out your requirements using the information listed below.

Prerequisite

Requirement(s)

​Veteran

A copy of your discharge or separation papers, known as Form DD214. Request your DD214 form here.

​Active-duty service member

Statement of Service signed by your commander showing: Full name, Social Security number, DOB, date entered duty, duration of any lost time, and name of command providing the necessary information.

Active and current member of National Guard/Reserves

A copy of your discharge or separation papers, known as Form DD214. Request your DD214 form here.

Never active and current member of National Guard/Reserves

​Statement of service signed by your commander showing: total creditable years of service, full name, Social Security number, DOB, date entered duty, duration of any lost time, and name of command providing the necessary information.

​Never active and discharged member of National Guard

Report of Separation and Record of Service (NGB Form 22) for each period of service. Find out more on your NGB form here.


Retirement Points Statement (NGB Form 23) and proof of character of service. Find out more on your Retirement Points here.

Never active and discharged member of Reserves

Copy of latest annual retirements points.


Proof of your honorable service.

Surviving spouse of Veteran or service-related disability

Veterans discharge documents (DD214). Request your DD214 form here.


If you are receiving DIC (Dependency and Indemnity Compensation) VA Form 26-1817 must be completed. To print a copy of the VA Form 26-1817 click here.


If you are not receiving DIC we will need a completed application for DIC (VA Form 21P-534EZ). Find out more about the VA Form 21P-534EZ here.

  • Copy of your marriage license

  • Veteran’s death certificate

Different Loan Types

  1. VA purchase

  2. VA cash-out refinance

  3. Take cash out to consolidate debt or make home improvements.

  4. Refinance a non-VA loan into a VA-backed loan.

  5. VA Interest Rate Reduction Refinancing Loan (IRRRL) “Streamline” Refinance

  6. Currently have a VA loan looking to take advantage of savings with a new VA loan.

  7. Lower monthly payments with a lower interest rate.

  8. Consists of less documentation (i.e. income or appraisal).


Benefits to VA Loans

When purchasing a home, it can be difficult to access the funds needed for a down payment. The biggest benefit with VA purchase loans is NO down payment is required compared to other loan products like conventional. an an an With VA loans there is no MIP (Mortgage Insurance Premium for— FHA) or PMI (Private Mortgage Insurance – Conventional).3 Also, you may have lower closing costs than conventional or FHA loans due to the limitation set by the Veteran Affairs for VA loans. The VA funding fee may be required depending on exemption eligibility. Talk to a Mortgage Advisor today and see if you qualify!

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