Do I qualify for the VA home loan program?

Service Requirements

In general, you’re likely eligible for a VA home loan if:

·         You served at least 90 consecutive days active duty during wartime

·         You served at least 181 consecutive days active duty during peacetime

·         You otherwise served at least six years in the Guard or Reserves (or 90 days active duty in Gulf)

·         Vets qualify for home loan benefits after 2 years of service (less if served prior to 1980), or 90 days active duty during the Persian Gulf

·          You’re the spouse of a service member killed in the line of duty or who died of a service-connected disability. Unmarried surviving spouse of a veteran who died while in service or from a service connected disability may use benefits

 

Benefits

• No monthly Mortgage Insurance – helps to qualify for larger loan

• Seller contributions allowed up to 4% of value…above and beyond payment of standard closing costs

• Fees that can be paid by the veteran are limited

• 100% gift funds allowed

• No minimum reserve requirements (conforming limits)

• Less Stringent Qualifications.

• Veteran can use entitlement multiple times fixed rate assumable loan (as approved by VA/servicer)

• Lower monthly payments

• Assistance/counseling to veterans in default due to temporary financial difficulty

• No down payment required up to county limits:  All counties in NV have a $417,000 limit.

http://www.benefits.va.gov/homeloans/docs/2014_county_loan_limits.pdf

Loan Programs: 30, 25 & 20 Yr Fixed

 

Occupancy Requirements

The VA loan program is focused on helping veterans and service members purchase homes they will live in year round as their primary residence. These aren’t for buying vacation homes, investment properties or other income-producing ventures. As part of that focus, the VA typically wants you living in the home full time within 60 days of closing.

That can obviously prove challenging for some service members, especially those on deployment. There are exceptions to the occupancy requirement, the most common being that a spouse can fulfill it on your behalf. 

 

The VA Loan Process

Prequalify. Prequalifying is important because it gives you an estimate of how much home you can afford while laying a foundation for the financing process moving forward.

Getting Pre-Approved. Receiving your preapproval letter is an exciting step. Your VA Loan specialist will identify a list of conditions that must be satisfied in order to finalize your VA Loan paperwork.

Examples of documents required in your preapproval processī‚ˇ 

–  Pay Stubs

–  Tax Returns and W2s

–  Employment History

–  Bank/Investment Statements

–  Evidence of Real Estate Assets

–  DD-214

Begin your Home Search

Making an Offer. When you find that perfect home, it’s time to make an offer and negotiate a contract with the seller.

Processing. Now that you’ve found a home, it’s time for your loan officer to order an appraisal for the property. The VA requires homes to be move-in ready and any problems with the property generally have to be corrected by the seller before a loan closes.

Closing.  Once you’re under contract to purchase a home, your loan documentation will go to an experienced underwriter for review. The underwriter will verify financial information and other documents and request additional items as needed. It is the underwriter’s job to ensure that everything is accurate and meets VA guidelines. Once the loan is approved, a closing date will be scheduled. At closing, you’ll sign paperwork, finalize your VA Loan and take ownership of your new home.

Move to your New Home. Congratulations!!! Well done.