VA Loans

Eligibility FAQs

What Is The Process For Making Application Of A VA Loan?
As stated above first you will need to have or make application for you Certificate of Eligibility. Then you can make application for a VA loan with any lending institution already approved by the VA to do so.

Where Do I Get A Certificate Of Eligibility?
First check the information above under the section for Eligibility Requirements. If you do fit one of the criteria then request and submit a form 26-1880, which is a Request for Determination of Eligibility and Available Loan Guaranty Entitlement. A copy of the form can be obtained by calling 800-827-1000. Send it to any VA Regional Office. Be certain to include a copy of your DD-214 with the form 26-1880.

Note: You must submit a statement of service signed by, or by direction of, the adjutant, personnel officer, or commander of your unit or higher headquarters showing date of entry on your current active duty period and the duration of any time lost if you are on active duty.

Can I Get Another VA Loan If I Already Have One?
Depending on your particular circumstances most often times the answer is yes. As long as you have you satisfied the terms of your last VA loan and disposed of the property, you can have your entitlement restored and you may make application again. You must send the VA a completed VA Form 26-1880 along with valid proof that the property has been disposed of, and the loan requirements were satisfied in full, to obtain restoration of entitlement. This proof can be in the form of a "paid in full statement" from the former mortgage company, or a copy of the HUD-1 settlement statement completed in connection with the sale of the property. Then the application can be presented to any VA Regional Office. A veteran can also obtain restoration of entitlement, on a one-time basis, if the prior VA loan has been paid in full but the property has not yet been sold.

I Have Sold The Property I Obtained With My Prior VA Loan On An Assumption. Can I Get My Entitlement Restored To Purchase A New Home?
If the assumer of the loan is also a veteran in good standing, fulfills the eligibility requirements and they are amenable to substituting his or her entitlement for yours, yes this can be done. However, if the assumer is not prepared to substitute his or her entitlement your entitlement will not be restored until the assumer has paid off the loan.

My Prior VA Loan Was Assumed, The Assumer Defaulted On The Loan, And The VA Paid A Claim To The Mortgage Company. The VA Said It Wasn't My fault And Waived The Debt. Now I Need A New VA Loan But I Am Told That I Am Not Eligible. Why Not? Or My Prior Loan Was Foreclosed On, Or I gave A Deed In Lieu Of Foreclosure, Or VA Paid A Compromise Claim. I Was Released From Liability On The Loan And/Or The Debt Was Waived. Can I Get Another VA Loan?
Because the VA has suffered a loss the fact that your debt was waived is not a consideration. The law prohibits restoration of you entitlement until the loss has been paid in full.

The Benefits Of VA Financing

1. No down payment will be required in most cases.
2. It is possible to borrow up to 100 percent of the VA's established reasonable value of the property. However, loans generally may not exceed $240,000 due to secondary market requirements.
3. The ability to negotiate interest rates with the lender.
4. There is no monthly mortgage insurance premium associated with a VA loan.
5. You cost's as a buyer will be limited at closing time.
6. An accurate and concise appraisal of you prospective property's value.
7. Long term thirty year loans with a repayment plan options:
   • FMRs - Fixed Mortgage Rates
   • GPMs - Graduated Payment
   • GEMs - Growing Equity Mortgages
8. Subject to VA approval of the assumer's credit you can make application for an assumable mortgage.
9. No penalty if you repay before the loan has come to term.
10. If during the course of your loan you run into financial difficulties, and are in danger of losing your home, the VA will provide personal loan servicing and financial counseling.

VA Loan Purposes

1. To assist qualified veterans in buying a home (townhouse or condominium unit in a VA approved project).
2. To construct a new home
3. To acquire and home and make improvements at the same time.
4. To renovate or upgrade an existing home by installing energy conserving features approved by the lender and VA. These features may be added with the purchase of an existing dwelling or by refinancing a home owned and occupied by the veteran. A loan can be increased up to $3,000 based on documented costs or up to $6,000 if the increase in the mortgage payment is offset by the expected reduction in utility costs. A refinancing loan may not exceed 90 percent of the appraised value plus the costs of the improvements.
5. To refinance an existing home loan up to 90 percent of the VA-established reasonable value, or to refinance an existing VA loan to reduce the interest rate.
6. To buy a manufactured home and/or lot.

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