Veterans, Active Duty, Guard, and Reserves

Are you familiar with the benefits of the VA Home Loan Program?

As a Veteran or active duty member of the armed forces, you may be entitled to a mortgage loan program especially for those who served our country. Only available to those have served, or the unmarried spouse of a service member who passed away from a service-related injury or illness,  the VA Home Loan offers 100% financing and no monthly mortgage insurance.

What is a VA Home Loan?

A VA home loan is a mortgage loan guaranteed by the U.S. Department of Veterans Affairs (VA) using financing from qualified lenders. The VA loan was designed to offer financing to eligible active duty military, members of the National Guard or Reserves, and veterans or their surviving spouses provided they are not married.

It is usually the best loan option for those who are eligible but many borrowers do not take advantage of this entitlement. There are a few reasons for this.

1. The buyer is not aware of the VA loan program or they don’t believe that they qualify
2. Their loan officer is not familiar with VA loans and recommends a different program. This happens more often than it should.
3. In some areas, the real estate agent(s) and/or the sellers don’t want to accept an offer with VA financing because they are not familiar with the program and the buyer is pushed into another type of loan.

Unfortunately, there is a lot of confusion and misinformation about the VA program. Click here to learn more about some of the other Myths and Misconceptions.

Benefits of the VA Home Loan

There are a number of benefits for our eligible borrowers that are not available to those with no service history. These include:

1. 100% financing is available up to the county loan limit (with full eligibility) which is currently $453,100 in our local area. You can borrow above that limit, but some down payment may be required.
2. No monthly mortgage insurance is required. There is a small Funding Fee that is paid up-front or financed into the loan, but it is waived for those with a 10% or greater service-related disability rating.
3. The sellers can give seller concessions up to 4% of the purchase price PLUS pay closing costs. These concessions can be used to pay down debts to help the buyer qualify for the program.
4. Loan underwriting is very flexible. The VA’s stance is to help as many veterans and military members purchase a home as possible as long as they meet some commonsense guidelines. The most important include stability and good past payment history.

There are a number of other reasons why the VA loan program is so good. Visit our page on VA Loan Benefits. 

Eligibility Requirements for a VA Home Loan

While most veterans with an honorable discharge will qualify, the guidelines are based on when the veteran was discharged and their length or service, as well as if they were regular military or in the Reserves or National Guard.

To determine eligibility, we will need to have a copy of your DD214 and a Certificate of Eligibility (COE). This will show us if you are eligible, the amount of entitlement remaining. and if you are exempt from paying the Funding Fee. While the COE can be ordered online through the VA portal, we are able to access it for you and it takes less than a minute normally.

To find out more specific guidelines, especially for those in the National Guard or Reserves, visit the page on VA Loan Eligibility Guidelines.

If you have questions or wish to talk with a VA Home Loan professional, contact us at 219-695-0369 or email scott@nwiloanguy.com.