All information provided is deemed reliable but is not guaranteed and should be independently verified.
Perhaps the most important facet of the VA loan program is that eligible veterans can buy almost any home with no down payment! You need not be a veteran of a war to take advantage of the VA home loan program.
Closing costs, with the exception of the VA funding fee, cannot be finance into the loan amount. However, the seller can pay for all your closing costs, including prepaids. This doesn't necessarily mean the seller will pay all that, but unless you are in a "Seller’s Market", it shouldn't hurt to ask.
The State Of Florida also has veteran programs that when they are coupled with either VA or FHA they can offer certain advantages to the vet such as lower interest rates.
Who is eligible for a VA guaranteed home loan?
If you completed a tour of active duty or if you were medically discharged, you should be eligible for a VA home loan. Many people are eligible if they served for more than 180 days on active duty. The amount of time required is based on when you were in the service. You generally must have received a general or honorable discharge. National Guard and Reservist personnel are eligible after 6 years of service. Desert Storm veterans are eligible regardless of their length of active duty or reserve service. Unmarried surviving spouses of veterans that died due to service related causes may also be eligible.
You can use your VA home loan more than once.
One of the most common myths about VA loans is that once you use your VA loan you can never use it again. Actually, you can reuse it many times! Your eligibility is restored by paying off the previous VA mortgage or having an eligible qualified veteran assume your loan and substituting their eligibility for yours. You may even have enough eligibility to purchase a home even if your previous VA loan isn't paid off. E-mail me if you have specific questions concerning this area.
How do I qualify for a VA loan?
Being eligible, does not mean you are qualified. To get a VA home loan your income and job history must be stable, you must have reasonably good credit and not be over obligated. Normally VA will allow 41 - 45% of your pretax monthly income to go towards credit debts and new house payment. In addition to your other credit obligations, VA considers alimony, child support and child care expense as revolving debt when qualifying you for a loan.
Disabled Vets receiving compensation may be able to purchase a home and pay no funding fee. Certain veterans that are very disabled may qualify for grants from VA. If you need information about the grant programs, contact the local VA office.
How do I get a VA home loan?
I can help you all the way through the process. If you are out of the service, try to find copy 4 of your DD214. If you have to get a copy from VA it may take about 8 weeks. If you are still on active duty, you will need a "Statement of Service" from your base personnel office. After you obtain the DD214 or Statement of Service, we can then order your VA Certificate of Eligibility and proceed from there.
What happens if someone assumes my VA loan?
VA loans are assumable! Loans closed prior to March 1988 could be assumed by anyone without qualification. Loans after March of 1988 are assumable by qualified buyers.
The veteran remains completely liable on these loans unless the veteran receives a "Release of Liability" from the VA. A veteran must have a qualified borrower substitute their VA entitlement for the previous veteran’s in order for VA to issue a "Release of Liability" . If you do not receive a total restoration of your entitlement, the portion of the eligibility used on your previous home loan will not be restored until the loan is paid off. If you do not receive a Release of Liability, you are still liable for the note to VA if the person assuming your loan defaults - even if they are qualified to assume it!!
What if my VA eligibility is tied up?
You have a couple of options. You can still get a VA loan with the remaining amount of your entitlement. Remember that you need enough cash or entitlement to cover only 25% of the purchase price to be eligible for the VA loan program. There is also State Of Alaska and FHA programs for veterans that offers a lower than normal down payment.
Qualifying and obtaining the best VA loan for you can be a very complex and time consuming experience. You really should have a Realtor© like me at no cost to you to help you obtain a VA home loan. Feel free to contact me via E-Mail or call me at (239)489-3994 if you have any questions about these options.
Additional information concerning the VA home loan programs is available direct from VA's home loans web page.