Everything You Need to Know About Getting a VA Home Loan
The Department of Veterans Affairs (VA) has a number of benefit programs aimed at helping veterans and their families, including the VA home loan program. Through this program, eligible individuals can get a mortgage for a home at a competitive interest rate and with little or no down payment.
What is a VA home loan?
Essentially, the VA home loan is a guarantee for part of your loan. With this guarantee, the VA agrees to cover a certain percentage of the loan should you be unable to pay it back.
Who is eligible for a loan?
Any veteran, active service member, and surviving spouses (in some situations) may apply for this type of loan. Applicants must have a good credit score and cannot have defaulted on any past VA guarantees.
What limits apply to the loan?
The limits of the guarantee stand at 25% of the loan, but the limits on the overall size of the loan for which the VA can do a 25% guarantee vary according to location. As of 2014, according to the US Department of Veterans Affairs, the basic entitlement is a $36,000 guarantee per service member or up to 25% of a loan below the limits. Loan limits start at $417,000 and may vary according to location. All loan limits are subject to change.
How do you apply for a VA home loan?
The first step in applying for a VA home loan is to obtain a Certificate of Eligibility (COE). While lenders may have access to automatic VA approval when you submit your mortgage application, it’s always a good idea to apply ahead of time.
Veterans Administration mortgages can be a great option for veterans ready to buy a home. To find out more about how the program works and if it is a right fit for you download our free eBook!Finance of America Mortgage is not affiliated with the U.S. Government. Each is solely responsible for the products and services it offers.