Who is eligible to receive a VA loan?
If you’ve served in the armed forces, you’re sure to have seen lists of benefits that veterans are entitled to. Perhaps the biggest benefit of being a veteran is the VA loan. And whether you’re active duty, a service veteran, a surviving spouse or even, in some cases – a civilian, you may be eligible for a VA loan. But the VA has specific requirements that must be met before a veteran is considered eligible.
Active duty military, veterans, surviving spouses, and in some instances civilians are eligible for a VA loan. VA loans have requirements the veteran must fulfill before they can be considered eligible.
For National Guard and Service Members
Those serving in the National Guard or in the Reserves have a minimum six year duty requirement. The six years must be completed before the service member can apply for a VA loan. Individuals who completed less than 6 years may be eligible if discharged for a service-connected disability.
For Active Duty
If you are now on regular duty (not active duty for training), you are eligible after having served 181 days (90 days during the Gulf War) unless discharged or separated from a previous qualifying period of active duty service.
For Retired Veterans
Those who are retired veterans you must have served at least 181 days (90 days during the Gulf War) of active duty, and must have an honorable discharge. If you served less than 90 days, you may be eligible if discharged for a service connected disability.
You may be eligible if you are a surviving spouse who remarries on or after attaining age 57, and on or after December 16, 2003.
You may also be determined eligible if you are
• A spouse of a veteran who died while in service or from a service connected disability, who has not remarried
• Are a spouse of a service person missing in action or a prisoner of war
To find out more, VA Home Loan Specialist are standing by to take your call 888-573-4496
Additional VA Eligibility Information
Why consider a VA loan? If you’re a veteran with sufficient credit, income and employment to purchase a primary residence without a required down payment on the purchase price of the home, just as long as the sale price doesn’t exceed the home’s appraised value. While you’ll need money for earnest money, the seller or lender may pay closing costs as they are a negotiable item.
There are many other advantages to having a VA loan for veterans who are ready to purchase a home. These include:
• VA home loans are assumable, as long as the person who is assuming the loan is qualified
• The Veterans Administration limits closing costs on the loan, so you won’t be asked to pay more than what is a fair price
• The VA is ready to assist you if you’re having problems making your loan payments
• You can always prepay a VA home loan with paying a penalty
So, who is eligible for a VA loan? Eligibility for VA financing is available to veterans who served in a recognized branch of the armed forces for at least 90 days (or less if discharged for a service-related disability) in the following service categories:
• World War II
• Korean Conflict
• Vietnam Era
• Persian Gulf War (August 2, 1990 to present)
Any veteran who was discharged under honorable conditions and gave at least 90 days of service which started prior to September of 1980. The veteran must have served at least 24 months of service.
This is known as the “two year requirement.” If you we enlisted after September 7th, 1980 (with active service on or after that date), OR were an officer and service began after October 16th, 1981, you must have successfully completed either:
• 2 years continuous service or more, OR
• the full period for which ordered to active duty, for 90 days minimum, or (any part during congressionally declared war) or 181 continuous days (peacetime).
For veterans who served during peacetime, you must have served for at least 181 days and received an honorable discharge. You may have served less if you were discharged for a service-related disability.
If you’re currently on active duty, you’re eligible after serving for at least 90 days. And, if you’re a member of the Reserves or National Guard and have at least 6 years of service with an honorable discharge or have retired, you’re eligible for a GI loan.
There are a variety of other exceptions available that might make you eligible to apply, having to do with medical conditions and hardships. The VA will be happy to provide you with a complete listing of eligibility.
Surviving spouses of active military veterans can also apply for a VA home loan. You’ll need to be an unremarried spouse of a veteran who died while in service or from a service connected disability. You can also apply if you’re a spouse of a serviceperson who is a prisoner of war (P.O.W.) or is missing in action (M.I.A.).
If the process seems a bit difficult, here’s some good news. If you need assistance determining your eligibility, or to apply for a VA home loan, you’ll find information and assistance at the VA Home Loan Centers.
What is the VA looking for in veterans applying for a loan? First, they’re looking for a good credit score. It doesn’t have to be “great” – just good. They’ll be looking in particular at the last 12 months to be sure you’ve made your payments on time. And some lenders require a minimum credit score, which varies by lender.
They’ll also want to make sure you can pay your mortgage, and also have enough income to pay your other bills as well. Depending on your family size and your location, they will determine your minimum requirements for loan approval.
The VA prefers that you are employed for 2 consecutive years. There are some instances where they’ll waive the 2-year requirement, but it requires documentation and support as to why you have not been steadily employed for 2 years.
Finally, if you’ve had a bankruptcy, the VA requires that you wait 2 years after filing a Chapter 7 bankruptcy discharge, and 1 year after filing a chapter 13 discharge. In addition, they require that there are no late payments in paying off your Chapter 13 bankruptcy.
If you’re eligible for a VA loan, you may want to consider using it refinance your existing mortgage. There are two types of VA refinances available: a Streamline refinance for those who have a VA loan and are looking to lower their rates; and a Cashout Refinance for homeowners who want to take cash out to pay off debt or consolidate mortgages.
Remember, if you’d like more information, or assistance with applying for a VA loan in Calaveras County, the professionals at VA Home Loan Centers are ready to help.