VA Loan News Updates!
Recent News Updates
Who is eligible for a VA loan?
Guidelines to qualify for a Certificate of Eligibility:
- Active-duty veterans discharged during WWII or later, without the status of "dishonorable"
- Active-duty veterans with at least 90 consecutive days of service during major conflict
- Peacetime veterans and active duty personnel with at least 180 days of consecutive service
- Enlisted veterans who entered the military after 1980 or officers who entered the military after 1981 and who have served at least 2 years.
Why should you consider a VA loan?
There are many reasons why a VA loan may be preferable to a conventional loan. Often times a VA loan is attainable even if you did not qualify for other types of loans. VA loans often have lower interest rates than conventional loans. There are no mortgage insurance premiums (PMI) on VA loans. Closing costs can be lower than other types of loans, and there is never any pre-payment penalty associated with a VA loan. If you have a service related disability you can usually have the VA's funding fee waived. If this is the case for you, the VA loan usually has no peers in the mortgage world.
How does a veteran obtain a VA backed loan?
- Pre-qualification: The first step should always involve getting pre-qualication from a VA approved lender. At this stage you'll find out if you could get approved for the size of the loan you want.
- Sales Contract: When you and your realtor set up a sales contract you'll want to indicate you are planning on obtaining a VA loan. Sometimes contracts will need an addendum.
- Initial Loan application: The veteran should choose a lender at this stage and provide a certificate of eligibility. At this point you should gather up the requested financial documents. Either VA or the lender will issue a "notice of value" for the loan based on the appraisal.
- Loan approval: If the application is complete and the appraisal is satisfactory, the final decision by the lender can be made at this time.
- Loan closing: The veteran would arrange to sign all mortgage related documents at a title company or attorney's office. The veteran's certificate of eligibility will be updated to show an active loan. If you sell the house you can have this updated again to reinstate eligibility.
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Other Useful sites:
Official VA Streamline Refinance Information
Refinancing in declining market
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