Active duty service and veterans enjoy a solid VA home loan benefit which includes accessing mortgage with no down payment. According to statistics, the U.S Department of Veterans Affairs has guaranteed over 20 million VA home loans since 1944. With such figures, it’s evident that these loans are popular.
However, the Department of Veterans Affairs does not offer any loan. All it does is guarantee the loan. It practically assures the lender that in case of loan default, it will come in to partially pay a part of the issue VA loan. Hence, it becomes easier for VA loan lenders to issue out the loans as they linked to a lower risk. However, to apply for the VA loan, you must meet the set standard and have a VA loan certificate of eligibility.
How do you apply for a VA Loan Certificate of Eligibility?
A VA loan Certificate of eligibility is applied through a VA lender or you can apply via online eBenefits portal. The application process requires you to provide some details about your present situation. For instance, you require a DD form 214. Also, active duty service officers must produce an authenticated service statement. The statement contains the following;
- Full name
- Date of birth
- Lost time
- Social security Number
- The date when you began duty
- Name of the individual providing needed details
Note that you will have to offer more information for Reserve members or National Guard. Also, in the list is, surviving spouses. Visit the VA website now to learn more about the information needed. Also, by working closely with your VA loan lender, they will help you understand everything that’s needed.
What are the requirements for loan home occupancy?
Besides, meeting the requirements for a VA home loan, you have to meet home occupancy requirements. First, any home acquired using a VA home loan must be treated as your primary home. In other words, the home can`t be used to buy or build an investment property or a vacation home.
Note that you can always refinance your VA loan. This is because the VA program is tailored to enable borrowers to refinance their VA loans at low rates.
What are the Underwriting requirements for VA loans?
Basically, a VA loan lender uses different criteria to determine the right candidate for a VA loan. Nevertheless, there are few things to note that apply to all the VA lenders. They include;
- Must prove that you have an income to pay the mortgage
- Ensure you don’t have pilling debts
- In as much there is no minimum credit score required, a VA lender might not just approve your loan application especially if your score isn’t 620 FICO score.
What do you understand by VA entitlements?
A VA entitlement is a common term in VA loans. It`s the part of loan guaranteed by the Department of Veteran affairs in case of loan default. VA entitlement falls into 2 categories which include the basic and bonus entitlement.
Finally, if you are from the Southeast part of the United States, Resource Financial Services, Inc is a reliable mortgage banker. Contact them today for a quick and flawless VA loan process.