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The Va Offers Home-Financing Assistance to Veterans:
Thinking about buying a home with your VA benefits? It's not complicated, and there are some very real advantages.
- You can buy with little or no down payment
- Your closing costs are slightly lower
- You won't be charged a monthly private mortgage insurance premium
- When you sell the home, you won't have a pre-payment penalty
- Your loan will be assumable by the buyer, at your interest rate, which may be a very attractive option to someone buying your home
Here is some basic information explaining how you can take advantage of this great opportunity:
Eligibility:
Veterans with active duty service, that was not dishonorable, during World War II and later periods, are eligible for VA loan benefits. World War II (September 16, 1940 to July 25, 1947), Korean conflict (June 27, 1950 to January 31, 1955), and Vietnam era (August 5, 1964 to May 7, 1975) veterans must have at least 90 days of service. Veterans with service only during peacetime periods and active duty military personnel must have had more than 180 days of active service. Veterans of enlisted service which began after September 7, 1980, or officers with service beginning after October 16,1981, must in most cases have served at least 2 years.
Gulf War. Basically, reservists and National Guard members who were activated on or after August 2, 1990, served at least 90 days and were discharged honorably, are eligible. VA can assist with eligibility questions.
Members of the Selected Reserve, including National Guard, who are not otherwise eligible and who have completed 6 years of service and have been honorably discharged or have completed 6 years of service and are still serving, may be eligible. Contact the VA Eligibility Center to find out what is needed to establish eligibility. Reservists will pay a slightly higher funding fee than regular veterans. (See paragraph entitled "Costs of Obtaining a VA Loan.")
Steps to Obtaining a VA Loan:
1) Obtain a COE (certificate of eligibility)
2) Get pre-approved with a VA approved lender - I can help you.
3) Find a home and negotiate the purchase
4) Have the home inspected- this is your opportunity to find out if the home has any serious defects. If so, you are not obligated to go forward with the purchase- but your purchase agreement has to be written subject to an inspection
5) You make formal loan application, and your lender orders an appraisal
6) Close the loan and move in!
Why buy through the VA?
1) You can usually buy with little or no money down
2) No private mortgage insurance
3) Closing costs are a bit lower for veterans
4) Your loan becomes assumable when you sell it
5) No pre-payment penalty
6) Financial counseling is available to help veterans avoid losing their homes in financial difficulties
To obtain a VA loan, the law requires that:
· The applicant must be an eligible veteran who has available entitlement.
· The loan must be for an eligible purpose.
· The veteran must occupy or intend to occupy the property as a home within a reasonable period of time after closing the loan.
· The veteran must be a satisfactory credit risk.
· The income of the veteran and spouse, if any, must be shown to be stable and sufficient to meet the mortgage payments, cover the costs of owning a home, take care of other obligations and expenses, and have enough left over for family support. An experienced mortgage lender will be able to discuss specific income and other qualifying requirements.
What you can buy:
a home, a condo in a VA approved project, or a init in a cooperative
to build a home
to improve a home with energy saving features (solar or heating/cooling systems, water heaters, insulation,storm windows/doors, etc), but there are restrictions- check with the VA for more information
Want more information: The following link provides basic how-to buy using your Va benefits:
http://www.homeloans.va.gov/vap26-91-1.htm
2) If you have a VA loan but are having trouble making your mortgage payments, it is very important that you take steps to avoid a foreclosure. VA may be able to help:
http://www1.va.gov/opa/pressrel/pressrelease.cfm?id=1514
3) VA Direct Home Loans for Native American Veterans Living on Trust Lands
http://www.homeloans.va.gov/VAP26-93-1.htm
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