VA Loans
Understanding VA Loans and Mortgages
A VA loan is a Veteran Administration Loan which means the Federal Government guarantees this loan and will back it.
It is easier to get a VA Loan for 100% financing than a conventional loan with a down payment and more people usually qualify for it. There is not a lot credit requirement for a VA loan and interest rates are usually lower. Unlike conventional loans the underwriter really can say one way or another about your approval rather than just a number on your credit score.
For those returning from the Iraq war, a VA loan is a great option and mortgage lenders make it easy for Veterans to qualify for these types of loans. They are safe and usually a lower fixed rate.
Similar to an FHA loan, you will need some documentation as stated income is not accepted. Documents like w-2′s and pay stubs are needed as well as employment verifications. A VA lender works a little differently in approving your loan in that if you have mistakes on your credit that can be explained such as a missed payment due to a death or illness, they are usually excused. These mistakes though must be submitted in writing to be approved.
VA lenders also need to make sure your income supports your lifestyle. That you are a smart, common sense consumer and are careful with your income and your debt.
If you served in the military, have average to decent credit, and you pay your rent and/or bills on time, the VA Loan would be the best way to go for you. For more information don’t hesitate to Contact us. We can put you in touch with a VA lender we trust and will help you meet your needs .
When specifically buying a home with a VA loan there are some eligibility requirements to consider:
→ Active Duty Service Personnel are eligible after having served on continuous active status for at least 90 days.
→ Prior Service Personnel eligibility is dependent on whether service occurred during Wartime or Peacetime
Wartime Service personnel must have served at least 90 days on active duty and been discharged or released under other than dishonorable conditions. If service was less than 90 days they may be eligible if discharged because of a service connected disability
Peacetime Service personnel have served at least 181 days of continuous active duty and been discharged or released under conditions other than dishonorable. If service was less than 181 days they may be eligible if discharged because of a service connected disability. Contact a VA Loan Specialist to determine whether 181 service days occurred during peacetime periods.
Two Year Requirement Period: If the Veteran’s period of service was between September 7, 1980 (or October 16, 1981 for officers) and August 1, 1990 the Veteran must have completed 24 months of continuous active duty or the full period (at least 181 days) for which the Veteran was called or ordered to active duty, and been discharged or released under conditions other than dishonorable.
Members of the Selected Reserve are eligible if they are not otherwise eligible and have completed at least 6 years in the Reserves or National Guard, or been discharged because of a service connected disability, and
- have been discharged with an honorable discharge, or
- have been placed on the retired list, or
- have been transferred to an element of the Ready Reserve, or
- continue to serve in the Selected Reserve
Other Types of Eligibility: Certain US Citizens, surviving spouses, personnel discharged for service connected disability, medical or mental conditions, or reduction in force may be eligible. Please contact Veteran Realty Services to help determine eligibility.
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