What is a VA Loan?
The Veteran Administration’s Loan program originated in 1944 through an act of Congress called the Servicemen’s Readjustment Act; also called the GI Bill. It was signed into law by President Franklin D. Roosevelt and was designed to provide Veterans with a federally-guaranteed home loan with no down payment. The VA lender is protected against loss if the loan defaults.
What type of home can I buy with a VA loan?
A VA home loan must be used to finance your personal, primary residence within the U.S. You have choices for the type of home you can purchase via the VA program:
• Single-Family Homes,
• Townhomes or Condominium in a VA-Approved Project,
• New Construction Homes, and
• Manufactured Homes.
How do I apply for a VA guaranteed loan?
You can apply for a VA Home Loan with any lender that participates in the VA Home Loan program. In addition to the VA application requirements from your lender, you will need the following at time of application:
• Certificate of Eligibility from the Veterans Administration by submitting a completed VA Form 26-1880, and
• Proof of Military Service from a VA Eligibility Center.
If I have already obtained one VA Loan, can I get another one?
Yes, your VA Home Loan eligibility is reusable. If you have paid-off your prior VA Home Loan, and sold the property, you can have your VA eligibility restored. Also, on a one-time basis, you may have your eligibility restored if your prior VA Loan has been paid-off, but you still own the property. The Veteran must send the VA a completed VA Form 16-1880 to the VA Eligibility Center. To prevent delays in processing, we recommend to include evidence that the prior loan has been paid off, and/or, the property was sold.
VA Loan Criteria Highlights
VA Provides 100% Financing – No Down Payment Loans,
No Monthly Private Mortgage Payments required like FHA Loans,
No Penalties for Prepaying your VA Loan,
VA Lenders provide Lower, Competitive Interest Rates,
You must have a minimum 580 credit score,
Qualification is Easier than a traditional Conventional Home Loan, and
Sellers Can Pay Some of the your Closing Costs.