Military Buyers & Sellers
From the VA website:
You must have satisfactory credit, sufficient income, and a valid Certificate of Eligibility (COE) to be eligible for a VA-guaranteed home loan. The home must be for your own personal occupancy. The eligibility requirements to obtain a COE are listed below for Servicemembers and Veterans, spouses, and other eligible beneficiaries.
VA home loans can be used to:
You must have satisfactory credit, sufficient income, and a valid Certificate of Eligibility (COE) to be eligible for a VA-guaranteed home loan. The home must be for your own personal occupancy. The eligibility requirements to obtain a COE are listed below for Servicemembers and Veterans, spouses, and other eligible beneficiaries.
VA home loans can be used to:
- Buy a home, a condominium unit in a VA-approved project
- Build a home
- Simultaneously purchase and improve a home
- Improve a home by installing energy-related features or making energy efficient improvements
- Buy a manufactured home and/or lot
- To refinance an existing VA-guaranteed or direct loan for the purpose of a lower interest rate
- To refinance an existing mortgage loan or other indebtedness secured by a lien of record on a residence owned and occupied by the veteran as a home
Dates of Service for Eligibility:
Service during Wartime:
World War II - September 16, 1940 - July 25, 1947
Korean War - June 27, 1950 - January 31, 1955
Vietnam War - August 5, 1964 - May 7, 1975
Service Requirements:
- At least 90 days active duty - with other than dishonorable discharge
- Less than 90 days active duty - if discharged for a service-connected disability
Gulf War - August 2, 1990 - to be determined
Service Requirements:
- 24 months continuous active-duty - with other than dishonorable discharge
- At least 90 days or completed the full term that he or she was ordered to active duty with other than dishonorable discharge
- At least 90 days active duty - and discharged for hardship, early out, convenience of the Government, reduction in force, condition interfered with duty or compensable service-connected disability
- Less than 90 days active duty - if discharged for a service-connected disability
Service during Peacetime:
All - July 26, 1947 - June 26, 1950 and February 1, 1955 - August 4, 1964
Enlisted - May 8, 1975 - September 7, 1980
Officers - May 8, 1975 - October 16, 1981
Service Requirements:
- At least 181* days continuous active duty - with other than dishonorable discharge
- Less than 181 days active duty - if discharged for a service-connected disability
There are several unique things that make a Veteran's Home Loan different and worth pursuing:
No Down Payment: This may be the most valuable benefit in any subsidized loan program. Conventional and even FHA loans require money down. Even a 3.5 percent down payment on a $200,000 house would equal $7,000.
Relaxed Requirements: Compared to a conventional loan, a VA loan’s credit requirements, which we discussed above, let more applicants through the door.
No PMI: Most loans, including FHA loans, require borrowers to pay private mortgage insurance which protects the lender if you default. With VA backing, a borrower doesn’t need to pay PMI premiums.
Flexible Payback: Unlike most mortgages, a VA loan allows the borrower to pay back the loan in a variety of ways including a graduated structure which has lower payments at the beginning of the term.
Lower Interest Rates: With so many variables we can’t quote reliable interest rates here, but VA loans typically offer rates lower than conventional loans and FHA loans. A lower rate can save you thousands of dollars over the life of a 30-year fixed rate mortgage.
No Down Payment: This may be the most valuable benefit in any subsidized loan program. Conventional and even FHA loans require money down. Even a 3.5 percent down payment on a $200,000 house would equal $7,000.
Relaxed Requirements: Compared to a conventional loan, a VA loan’s credit requirements, which we discussed above, let more applicants through the door.
No PMI: Most loans, including FHA loans, require borrowers to pay private mortgage insurance which protects the lender if you default. With VA backing, a borrower doesn’t need to pay PMI premiums.
Flexible Payback: Unlike most mortgages, a VA loan allows the borrower to pay back the loan in a variety of ways including a graduated structure which has lower payments at the beginning of the term.
Lower Interest Rates: With so many variables we can’t quote reliable interest rates here, but VA loans typically offer rates lower than conventional loans and FHA loans. A lower rate can save you thousands of dollars over the life of a 30-year fixed rate mortgage.
US map of VA Loan Limit Amounts:
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