If you’re dreaming of becoming a homeowner and are currently serving our country, a veteran, or a an eligible surviving spouse, you owe it to yourself to understand what the VA Home Loan Guarantee is.
As part of our mission to serve you, we provide a home loan guaranty benefit and other housing-related programs to help you buy, build, repair, retain, or adapt a home for your own personal occupancy. ~VA Home Loans
Generally, the eligibility rule is that all veterans that have served on active duty and have been discharged favorably after having spent a minimum service time of 90 days during a time of war, or those who have spent at least 181 days in continuous service during a time of peace, are eligible for a VA home loan.
There are also additional requirements which include a two-year service if the veteran had enlisted and began service after September 7, 1980, or began service after the date of October 16, 1981 as an officer.
Those who served in the National Guard and in the reserve units are required to have six years in the service, and meet other criteria before being eligible for a VA loan. Tap here for more information about VA Home Loan benefits.
Ways a VA Home Loan Can Help You
- purchase loans & cash out
- buy a home or condominium
- build a home
- repair or improve a home
- buy a manufactured home with or w/out land
- buy and improve manufactured home lot
- install alternative energy solutions such as solar heating or cooling system
- purchase and improve home’s energy efficiency simultaneously
- Interest Rate Reduction Refinance Loan (IRRRL)
- refinance an existing VA home loan at a lower interest rate
- Native American Direct Loan (NADL) Program
- Other Local VA Benefits | Indiana Department of Veteran’s Affairs
- Indiana Services and Benefits for Veterans
Because the VA makes a guaranty to your mortgage lender for a specific portion of the home loan, it allows the lender to offer you more favorable terms and it permits you, the buyer, to purchase the home with no money down and no PMI, (private mortgage insurance), requirements. You may be responsible for certain funding fees, or, alternately, you may be exempt. Even better, some veterans are eligible for property tax deductions¹. Tap here to download required form.
Taking advantage of the VA Home Loan program can save you as much as 20% of the purchase price of the home which would normally be required up front as a down payment. There are set limits that the VA will allow, in the amounts of $104,250 for the guaranty, and $417,000 as the full home loan. In the majority of cases, the amounts are equal to the reasonable current value of the home, plus the funding fee. Tap here to view current funding fee chart.
Even though the VA bill was set up for veterans, one still must meet certain eligibility requirements in order to secure a VA loan.
VA Loan Eligibility Center
Attn: COE (262)
PO Box 100034
Decatur, GA 30031
Note: in order to download form, you will need a PDF viewer which can be downloaded for free at: https://get.adobe.com/reader/
Just because someone is a veteran doesn’t mean they’re not held accountable for their credit standing when it comes to securing a VA loan. Having a good credit history is important when it comes to securing a loan, no matter the lending source, or who is guaranteeing the loan. A person’s credit history not only shows how an individual has handled their payment obligations in the past, it also acts as a road-map for the lender on how the individual will handle their finances in the future.
Generally, the VA will pay strict attention to the past 12 months of the applicant’s credit history. If there have been any missed or slow payments, the VA will not look favorably upon the applicant as a prospect for a home loan. In the case of an applicant having had a run of slow or missed payments, the VA will consider the matter as satisfactory once the applicant has made all payments on time for a length of twelve months. Make sure to actually obtain and check your credit report for any errors that you may be able to correct. Our handy guide, located here, can assist you.
Bonus Links For Veterans
- VetFriends Discount Center
- List Your VA Owned Business For Free
- Veteran’s Day Council of Indiana
- Evansville, IN Veterans Parade Info
- 2016 Veterans Day Discounts & Deals
For additional information, refer to our VA Home Loan Guide and contact us today.
¹ Gov, Indiana. “Indiana Department of Veterans’ Affairs.” DVA: Property Tax Deductions. Indiana.gov Department of Veterans Administration, n.d. Web. 09 Nov. 2016. <https://www.in.gov/dva/2383.htm>.