How to Apply for a VA Home Loan

People who serve in the armed forces do so much for our country, it is only fitting that when they return from active duty they receive some sort of additional benefits catered to their needs. Home ownership is just such an area, as the government has helped create the VA home loan specifically for veterans and their families. Applying for a VA home loan is not terribly different than applying for any sort of mortgage or loan, but there are some specific requirements of eligibility and property appraisal. Here?s a quick look at the steps you can take to see if you qualify, and how to apply for a VA home loan.

VA home loans carry one major benefit, in that they do not require a down payment. Additionally, there is no high limit or cap on the income the borrower makes that would disqualify him from applying. But since there is no down payment made, strict standards of eligibility need to be followed. Traditionally, a down payment is what secures the lender against the borrower missing payments. Without this down payment service as security against a foreclosure, lenders require a guarantee certificate from the Veterans Association. The U.S. government ?guarantees? the loan, essentially vouching that the borrower is trustworthy, as an act of gratitude for a veteran?s years of honorable service. Luckily, the VA has made getting this certificate of guarantee very simple. Any active duty armed forces member, military veteran, or member of the national guard or selected reserves can simply submit VA Form 26-1880, along with proof of service. Proof of service can be any statement of active duty, proof of national guard or reserves participation, or DD Form 214. Once you?ve got all of your materials together, send them to the VA Eligibility Center. You?ll find all their contact information online. Remember to call them to check your status ten days after you?ve submitted everything.

When it comes to inspecting the new property, any buyer should work with a state-licensed real estate agent. There?s no practical difference between this step of the process for a veteran or a private citizen. Just make sure you understand all the legal responsibilities you will be assuming with the property, and go along with your home inspector as they check out the property, so you can ask any necessary questions.

Once you?re ready to request the loan, make sure you contact several lenders so you have an idea of the maximum mortgage you will be approved for, and what your financing rate might be. When you?re discussing the paperwork, make sure the contract includes a financing contingency, declaring that the contract will only go into effect pending your approval for a VA guaranteed loan. Lenders will still review your credit score and job history, comparing that with their own metrics and the VA loan approval guidelines. There are some lenders that work specifically with these loans, as part of the VA Lender Appraisal Processing Program, or LAPP. They won?t need to send any paperwork in to the veterans association until the sale has closed.

As soon as you?ve been approved for a VA guaranteed loan, you?ll receive a VA number. You can use that number to stay current on the progress of your loan application and your home?s appraisal. The state-licensed appraiser will see the property and report back to the VA and the lender, declaring whether or not the property and the guarantee represent enough collateral. Once the loan and the home itself are approved, you?re almost in the clear. Closing costs can be a burden, but the VA regulates the amount of closing costs a veteran can be charged, so you can rest assured you are being treated fairly. Veteran home loans are an exciting benefit for anyone who has served in the armed forces, and exploring the option of taking advantage of their availability is certainly highly recommended.

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