VA Loan FAQ

If you’re looking to get acquainted with the basics of VA Loans so you can see if you qualify, you’ve arrived at the right place. For Frequently Asked Questions regarding VA loan eligibility, as well as some key pointers to keeping in good standing with your loan, keep reading!

Offered through the U.S. Department of Veteran’s Affairs, which is sometimes referred to as the “VA” for short, these mortgage loans offer service members, veterans, and their spouses the opportunity to purchase a home with little to no down payment. Generally, these loans come with a competitive interest rate–good stuff for anyone who’s seen the housing market lately!

To be considered eligible for a VA Loan, you must first apply for a Certificate of Eligibility (COE) and present this to your lender. For a VA home loan, applicants must pass credit and income loan requirements in order to be considered by the U.S. Department of Veteran’s Affairs. For more information on Certificates of Eligibility, reference the VA’s website.

VA Loans enable new homeowners to repair an existing home, purchase a new home, and refinance their existing mortgage. While the Department of Veteran’s Affairs determines the terms of the available mortgage offerings and backs the loan, it does not provide financing. This comes from private lenders like banks and mortgage companies.

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In short, the answer to this question is often yes! There are several key benefits to working with VA Loans rather than other home loans. Here are some of the top reasons to abide by the terms of a VA Loan:

• no prepayment penalty for early loan repayment
• very little to no down payment on the house
• limited closing costs, which may be covered by seller
• no requirement for private mortgage insurance
• the VA is available to help new loaners avoid defaulting and stay on track

If, for whatever reason, you do not meet the listed service requirements from the VA’s website, there may be other options for you. It’s possible that you will still be able to qualify for a Certificate of Eligibility even if you have been discharged earlier than the minimum service requirements. Here are some extenuating circumstances around discharge in which you may still qualify for a COE:

• the convenience of the government (must have served at least 20 months of a 2-year enlistment
  hardship
• early out (must have served 21 months out of a 2-year enlistment)
• certain medical conditions
• reduction in force
• a service-related disability stemming from your service

If you are the enduring spouse of a veteran or a Prisoner of War (POW), you may be eligible for COE.

Check out our website to apply for a VA Loan today or look for a consultant in your area to get started!