The VA Home Loan Plan is a $0 down mortgage option available to Veterans, Service Members, and select military spouses. This was created by the United States government in the year 1944, with the aim of helping returning service members purchase homes without needing a down payment or excellent credit.
Over the years, VA loans have provided a lifeline for Veterans and active Military homebuyers facing higher credit scores and down payment requirements.
The VA Loan program is the most powerful and helpful home loan program for many veterans, service members, and military families. This is because it is a government-backed loan that comes with significant benefits that open the doors of homeownership to veterans who might find it difficult to obtain financing.
There is no down payment or private mortgage insurance required. Furthermore, they offer competitive rates and terms and also allow qualified borrowers to buy a home with little to no money. As of January 1, 2020, VA loan limits no longer apply to eligible veterans with full VA loan entitlement.
VA Loan Eligibility
In order to be eligible for a VA loan, there are various criteria you must meet up to. Find below, the eligibility criteria to apply for VA loans.
1. Must have a minimum length of 181 days and 90 days of active duty service during peacetime and wartime respectively.
2. Not up to 90 days of active duty service if discharged due to a service-related disability.
3. Must have a valid Certificate of Eligibility (COE) and satisfy the lender’s credit and income requirements.
4. Spend not less than 6 years in the reserves or national guard.
5. Veterans and surviving spouses of veterans who have remarried are not eligible for VA loans.
6. Individuals that served with any of the following organization can also apply:
- Cadets at the U.S. military, Air Force, or Coast Guard academies
- Midshipmen at the U.S. Naval Academy
- Merchant seamen with World War II service
- S. Public Health Service officers
- Officers of the National Oceanic and Atmospheric Administration
How to Apply for VA Home Loan
Applying for VA loans is very similar to applying for a conventional mortgage.
In order to apply for VA loans, you must follow the guidelines.
- Understand the broad VA loan eligibility requirements.
- Contact a VA-approved lender like Veterans United Home Loans and start your VA Loan application
- Obtain your Certificate of Eligibility through your lender or you can get if yourself by undergoing the process.
- Complete your loan application and provide all necessary paperwork as required by your lender, including W-2s, tax returns, and additional financial information.
Note: The VA home loan plan is made available to active duty service members, veterans and current and retired members of the national guard or reserve, and the surviving spouses of members that died in action.