what is the va home loan basic entitlement?

BASIC ENTITLEMENT?

WHAT IS THE VA HOME LOAN

There are several benefits available from the VA to veterans looking to purchase a home and get a loan to do so.

However, being able to understanding what these benefits actually are can be complicated so we have tried to put together a clear explanation.

WHAT IS THE VA HOME LOAN PROGRAM?

This program exists in order to help veterans purchase homes for themselves and their families.

This program exists in order to help veterans purchase homes for themselves and their families. The Veterans Administration wants to ensure that all veterans …

This program exists in order to help veterans purchase homes for themselves and their families.

… have access to housing and medical care, and this program aims to help increase the number of veterans who own a home.

ELIGIBILITY

This program exists in order to help veterans purchase homes for themselves and their families.

There are a few basic qualifications a veteran must meet in order to be eligible for this home loan entitlement program.

This program exists in order to help veterans purchase homes for themselves and their families.

Once you have obtained your Certificate of Eligibility (COE) you are able to apply for these benefits and use them towards the purchase of a home.

You are eligible for this program if:

You have served 90 consecutive days of active service during wartime ORYou have served 181 days of active service during peacetime

You have more than 6 years of service in the National Guard or Reserves

OR

You are the spouse of a service member who has died in the line of duty or as a result of a service-related disability.

OR

This program exists in order to help veterans purchase homes for themselves and their families.

You only need to meet one of these qualifications in order to be eligible for the program.

BASIC ENTITLEMENT PROGRAM

The basic entitlement for a veteran looking to purchase a home is $36,000. The VA guarantees that this amount will be paid to the lender in case of default.

This allows veterans to get a loan for a home without the huge down payments that are usually associated with buying a home.

Lenders are usually willing to lend up to 4 times the amount of this guarantee, which is up to $144,000.

If you are purchasing a home under this price limit, then you will only need to use this basic entitlement.

However, home prices are much higher than this in many parts of the country, so the VA has also created a secondary entitlement plan for homes with higher prices.

SECONDARY ENTITLEMENT PROGRAM

The secondary entitlement program allows veterans to receive home loans up to $417,000.

The entitlement covers a quarter of this money, which comes out to $104,250 in an entitlement guarantee.

This program is intended to help veterans purchasing homes in higher-cost areas.

OTHER CONSIDERATIONS

In order to receive this home loan, you need to show that you have enough income to cover your expenses.

This includes the cost of your new mortgage payments if you are approved for the loan!

The VA also expects that you have a certain amount of income in order to cover your basic expenses that aren't monthly bills such as food and transportation for your family.

This is called residual income and it is a necessary part of the loan application.

Once all of these conditions are met, you will be able to use this entitlement to help purchase your new home.

Mortgage Originator Jimmy Vercellino, specializing in VA loans, helps veterans use their VA loan benefit to their greatest advantage.

Be a proud homeowner today. For more details call 480-351-5904 or visit the site www.valoansforvets.com

VA Loans for Vets7600 E. Doubletree Ranch Road #200 Scottsdale, AZ 85258Phone: (480) 351-5904Email: jimmyv@fcbmtg.com