Complete Guide to VA Home Loan Information
When you really break it down, a VA home loan isn't very different from any other home loan. The only glaring differences you'd see are that you don't need to make a down payment on a VA loan, you'll need to have present your Veteran's certificate, and your appraiser needs to be assigned by the VA. Aside from that, it all comes down to specifics in the procedure. Here's what you need to know:
Veterans are entitled to use their benefits to obtain VA Home Loans, which affords them the opportunity to purchase a home with 100% financing. The only payment you are required out of pocket is that cost of closing on the loan.
VA Home Loans benefit the Veteran in a number of ways. Veterans are entitled the flexibility to negotiate interest rates with the lender; they are void of paying a monthly mortgage insurance premium; they'll be able to contact financial counselors to help them avoid finding themselves in financial difficulties.
When to Use a VA Home Loan
Like all other home loans, VA Home Loans can be used in a variety of ways:
- To buy a house, condo (in a project approved by the VA), or co-op.
- To build a house.
- To purchase and immediately renovate a home.
- To renovate a home by installing Green features.
- To refinance an existing home loan.
Who is Eligible?
Eligibility hinges on a few factors. Most paramount, the applicant must be a Veteran who served in the United States Military in World War II or was active at any time after that. But the veteran also needs to have good credit, and must be in stable condition in regards to their finances so that they can pay their mortgage payments, cover the associated costs of owning a home, and have enough left over for their family.
Documentation
You're going to need a number of pieces of documentation when you apply for a loan.
- Drivers license or government issued photo ID
- Your two most recent W2 forms
- Your last thirty days worth of pay stubs
- A copy of your DD Form 214 release paper (active military need their Statement of Service)
- Note from current mortgage
- Letters documenting any disability, pension, or Social Security payments you are receiving
The 5 Step Plan
With all this information in tow, obtaining a VA Home Loan is very basic.
- Apply for a Certificate of Eligibility, which you can obtain by completing a Request for a Certificate of Eligibility and sending it to the eligibility center.
- Find a home; which we all know can be both entertaining and annoying.
- Order an appraisal. Remember that appraisals on VA Home Loans need to be assigned by the VA.
- Apply for a mortgage lender. Any bank or lender will do.
- Close. Move in, too.