For qualified military members, veterans, and their surviving spouses, VA loans are a tremendous advantage. It enables you to be eligible for a low-cost mortgage when purchasing or refinancing a home, even if your credit isn’t ideal.
If you’re on active duty or a veteran, you are highly likely to be qualified for a VA loan. Let’s get to know government-backed loans can help you get your home finance on track.
What Exactly Is A VA Loan?
VA loans are a form of military loan that mortgage lenders make available to eligible veterans, active military members, and spouses. They have the government’s support through the Department of Veterans Affairs (VA)
The VA provides private lenders with particular guarantees on loans to qualifying veterans, active service members, and surviving spouses. Because of these guarantees, lenders will make loans to people who may otherwise be deemed unworthy of credit..
Who Is Eligible For A VA Loan?
People who served in the Air Force, Army, Coast Guard, Marine Corps, Navy, or National Guard are all highly likely to be VA loan eligible. You must get a Certificate of Eligibility from the VA and intend to live in the property as your primary residence. The VA Loan does not cover investment properties.
Depending on the length and kind of military service, additional qualifying criteria may apply. However, veterans are generally qualified if they have been on active service for at least 90 days during a war or at least 181 consecutive days during peacetime. To see all the eligibility requirements for a VA loan, click here.
How to Apply for a VA Loan
In many ways, qualifying for a VA loan is similar to applying for any other mortgage. Here’s a quick guide to help you through the process
Obtain an Eligibility Certificate (COE)
This is required to be qualified for a VA loan. In addition, depending on your status, you will be required to submit documentation of military service.
Inform your lender that you require a certificate of eligibility early in the process so that they can assist you in obtaining one.
Obtain Pre Approval
Get preapproved for a mortgage loan as soon as possible when purchasing a house. The approval will provide you with a starting point for calculating how much you can afford.
Look for a Home
Finding a home with a VA loan is no different than any other home-hunting endeavour. Any property you purchase must fulfill the VA’s Minimum Property Requirements or MPRs.
Submit a Purchase Offer
When you locate a property in your price range that you like, make an offer to purchase it. The vendor may accept, reject, or create a counteroffer. Once you’ve settled on an amount, a real estate agent or an attorney can assist you in drafting a sales contract.
Go through the VA Appraisal and Underwriting Process
Your lender’s underwriters will examine your financial situation to ensure you qualify for a VA loan. Before they accept the loan, the VA will also demand an assessment.
Complete the Purchase of Your New Home
When the VA appraiser certifies that your new house is safe and sound, it is time for you to sign on the dotted line, obtain your loan, and receive the keys to your new home.
Whether you’re purchasing or refinancing a home, choosing the right loan can make the application process go more smoothly. So do yourself a favor and include a VA Loan in your mortgage search if you satisfy the qualifying conditions. Having the right mortgage partner can help demystify much of the process from applying for a COE to making sure your home fits the VA’s minimum property requirements.
Liberty Mortgage Group is one of the leading mortgage brokers in Centennial, CO. Schedule a meeting with our best officers today and start working towards your dream home!