Are you interested in taking out a VA home loan but are unsure of what it entails and whether it is the right choice for you and your family? As part of their mission to give back to veterans, servicemen, and surviving spouses, the Veteran Benefits Administration offers a home loan guarantee benefit, and here’s what you need to know before applying for this loan.
How Much Does The Loan Guarantee?
The VA Loan will guarantee up to 50% of a home loan up to the amount of $45,000. For loans between $45,000 and $144,000, the VA home loan will guarantee a maximum of 40% of the loan. For home loans higher than $144,000, the VA home loan will guarantee 25%.
Key Features:
- Provides Equal Opportunity: All veterans, regardless of race, sex, religion, familial status, and handicap, have equal opportunity to purchase a home
- No Down Payment: Unless specifically required by the lender, which is a bank or mortgage company
- Low Interest Rates
- Lifetime Benefit: Eligible veterans can use this benefit multiple times
- No Mortgage Insurance Requirements
Different VA Home Loans and Eligibility
The U.S. Department of Veterans Affairs has a list of strict requirements that need to be met to be eligible for a home loan. To be an eligible veteran, you need to meet the minimum active-duty service requirements, which include serving for at least 90 continuous days.
- Purchase Loans and Cash-Out Refinance. This loan is for active duty service members only, and to qualify, you must have satisfactory credit and income as well as a certificate of eligibility.
- Interest Rate Reduction Refinance Loan (IRRRL). To qualify for this type of loan, you will need to have an existing VA-guaranteed loan on the property. This type of loan can reduce your monthly payments for the existing loan.
- Native American Direct Loan (NADL) Program. This VA home loan program helps Native American veterans purchase or improve homes on Native American trust lands. To qualify, your tribal organization must participate in this VA loan program.
- Adapted Housing Grants. For veterans with permanent disabilities who need suitable housing, this loan program caters directly to this.
Steps To Applying For The Loan
- Find a suitable property
- Apply for a loan from the lender
- Present your discharge papers or certificate of eligibility
- Wait for the property to be appraised
- Wait for the property’s value to be determined
- Get approved for a VA loan
Contact a VA Loan Specialist in Oakhurst
Applying for VA benefits is notoriously frustrating. Let Granite West Funding make the application process as smooth as possible. We will guide you through the applications and help you purchase your new home. Give us a call at (559) 540-2275.
