Recently, I have been conducting Homebuying Seminars for Veterans. The purpose is providing information to help them with using their VA Home Loan benefit. I have found in the seminars that many have not used this benefit they earned from serving in the greatest military services in the world. As a 26 year veteran from the U.S. Air Force, I decided to put together a Frequently Asked Questions (FAQs) to provide to Veterans. Below is the synopsis of the FAQs. Please read and contact me to help you with using your VA benefit in your homebuying experience.
1. The VA home loan guaranty benefit enables Service members, Veterans, or eligible surviving spouses get a home loan guaranty benefit and other programs that can help you buy, build, repair, or retain your home.
2. A VA purchase home loan can help you purchase a home at a competitive interest rate. The loan also helps when you’re unable to obtain other financing.
3. You’ll still need to have the required credit and income for the loan amount you want to borrow. But a Veterans home loan may offer better terms than with a traditional loan from a private bank, mortgage company, or credit union. For example, nearly 90% of VA-backed loans are made with no down payment.
4. Eligible Veterans, service members, and survivors with full entitlement no longer have limits on loans over $144,000. This means you won’t have to pay a down payment, and VA guarantees to your lender that if you default on a loan that’s over $144,000, they’ll pay them up to 25% of the loan amount.
You have full entitlement if you meet any of these requirements:
You’ve never used your home loan benefit, or you’ve paid a previous VA loan in full and sold the property (in this case, you’d have your full entitlement restored), or you’ve used your home loan benefit, but had a foreclosure or compromise claim (also called a short sale) and repaid us in full
5. The lender will determine the size of loan you can afford based on your: Credit history, Income, and assets (items of value such as savings, retirement, and investment accounts). VA does not require a minimum credit score, but some lenders may have different credit score requirements. Be sure to contact more than one lender to compare.
6. The first step in applying for a VA Loan is you or the lender obtaining a Certificate of Eligibility (COE) from the VA. Go to https://www.va.gov/housing-assistance/home-loans/how-to-request-coe/
7. A VA loan can be more advantageous than other loans based on VA Funding fee and closing costs.
The VA funding fee is a one-time payment that the Veteran, service member, or survivor pays on a VA-backed or VA direct home loan. This fee helps to lower the cost of the loan for U.S. taxpayers since the VA home loan program doesn’t require down payments or monthly mortgage insurance. You can include the funding fee in the loan and pay over time so this saves out of pocket costs at closing. If receiving VA Disability compensation, the funding fee is waived. Contact me for more information on assisting you with the purchasing or selling using your VA benefits.
Thank You for your Service!
