The Federal Housing Administration (FHA) loan is often referred to as a first-time homebuyers' loan,…
If you’ve been thinking about purchasing a home and you served or are serving in the United States Military, you’re in luck!
You may be eligible for a VA Home Loan. This can be an incredible way to finance your new home. Whether you’re familiar with buying a home or this is your first time navigating the world of home-buying, it’s important to understand exactly what you’re getting into. Here’s what you need to know about applying for and receiving a VA home loan.
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What exactly is a VA loan?
Being a veteran isn’t easy, but with a VA Loan, buying a house becomes a little bit simpler. When you purchase a home, if you don’t pay cash for it, you’ll need to apply for a mortgage. Typically, most home buyers utilize their personal banks to acquire a mortgage. A VA Loan works the same way as a traditional mortgage, but it offers several benefits. First off, it’s guaranteed by the U.S. Department of Veterans Affairs. This loan is specifically designed to help veterans and their families purchase a home. Additionally, when you utilize a VA Loan, you do not have to make a down payment. While traditional mortgages may require up to a 20% down payment in order to secure the loan, a VA Loan does not have this requirement. This makes utilizing this loan an affordable option for many military and veteran families.
Who is eligible for a VA loan?
In order to receive a VA Loan, you need to meet certain eligibility requirements. You need to have satisfactory credit, for starters. Additionally, you do need to have regular and sufficient income to apply for the loan. You will also need a Certificate of Eligibility (COE). In addition to these requirements, it’s important that the home be for your own personal use. You cannot use a VA Loan to buy a home for another person or to finance a rental property. If you do want to utilize a VA Loan, you may use your loan to purchase a home, build a home, or even purchase and renovate a home. You may also use a loan to purchase a manufactured home that you want to live in. The most important thing to remember is that you must intend to live in the home yourself in order to be eligible for a loan.
How to Get Pre-Approved for a VA Home Loan?
- Gather your financial documents.
- Choose a VA lender.
- Fill out an application.
- Get your COE.
- Speak to a VA loan officer.
- Receive your VA loan preapproval letter.
How can I apply for a VA loan?
First, you’ll need to utilize the eBenefits website to receive your Certificate of Eligibility (COE). You can then take this to the lender you want to use. They will be able to begin processing the paperwork that determines you’re eligible for a VA Loan. Note that if you prefer to apply directly through your lender, Home Lending Pal can connect your with one that has access to the programs that determine eligibility. Our lenders are familiar with VA Loans, and can determine your eligibility within minutes from your computer.
What happens next?
Once you have determined your eligibility for the VA Loan and brought your certificate to your lender, it’s time to get started! Your bank will assist you in filing the paperwork you need in order to apply for the VA Loan. They’ll guide you through the process of determining how much you want to finance and how to get started setting up the loan itself.
If you’re a proud service member, veteran, or surviving spouse of a veteran, you may be eligible to utilize the VA Loan to purchase your home. This can be an incredible opportunity to invest in a home you love, so don’t waste time. Apply for a loan today.