1 Apply for a VA Home Loan • 1-866-437-7385
Simply everything you need to know about VA home loans.
VA HOME
LOANSMADE SIMPLE
MilitaryVaLoan.com • 1-866-437-7385 • NMLS# 1019791
2 Apply for a VA Home Loan • 1-866-437-7385
Table of Contents
• WhatisaVAHomeLoan?...........................................................................................
• VAHomeLoantoPurchaseaHome..........................................................................
• HowtoKnowifYouAreEligible.................................................................................
• WillIQualifyforaVALoan?........................................................................................
• HowMuchcanIAfford?..............................................................................................
• VAHomeLoanChecklist..............................................................................................
• QuickListofVAHomeLoanAdvantages.................................................................
• VAHomeLoansforRefinancing...............................................................................
• VAStreamlineRefinance.............................................................................................
• VACashOutRefinance................................................................................................
• RefinancingaNon-VALoan........................................................................................
• ApplyforaVAHomeLoan.........................................................................................
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3 Apply for a VA Home Loan • 1-866-437-7385
What is a VA Home Loan?
A VA home loan is simply the bestmortgageloan product available today. As an eligibleactive duty service member or Veteran, youcanbuyahomewithzerodownpayment.Or,you can refinance your currentVAhome loan,usuallywithverylittledocumentation.
The VA backs VA home loans, allowing banksto lend with much more lenient standardscompared to other mortgage programs. And,upfront andmonthly expenses to theVeteranare reduced. There’s simply no better way topurchase or refinance a home thanwith a VAhomeloan.
The VA home loan was introduced in 1944to help military members buy a home afterreturningfromWorldWarII.Sincethen,over18millionservicemembershavetakenadvantageof thebenefit they’veearned. Joinyour fellowservice members and take advantage of thisopportunity.
You May Be Eligible for a VA Home Loan
ManyVeteransdon’trealizetheyareeligibleforthis loanprogram.AccordingtoaVA study in2008, therewereover23millionVeteransbutonly11%ofthosehaveusedtheirVAhomeloanbenefit.
Don’t be afraid to use your benefit becauseyou’reunsureofhowthisloanprogramworks.We at MilitaryVALoan.com are here to makeVA home loans simple. Keep reading to findoutmoreabout theprocess,orsimplytalk to a reputable VA-approved lender.YoucangetyourquestionsansweredandbewellonyourwaytoowningahomeorrefinancingwithaVAhomeloan.
MilitaryVaLoan.com • 1-866-437-7385
4 Apply for a VA Home Loan • 1-866-437-7385
VA Home Loan to Purchase a Home
No Down Payment Required: The VA loaneliminatesalotoftheroadblockskeepingmanywould-behomeownersfrombuyingahome.Thebiggestbenefitisthatthereisnodownpaymentrequired.
Adownpaymentcanadduptoalotofmoney.Another type of loan, the FHA home loan,requires a 3.5% down payment. That’s $8,750on a $250,000 purchase. Conventional loanstypicallyrequireevenmore:atleast5%down,or$12,500ona$250,000home.
AsaVA-eligibleloanapplicant,the initialdownpaymentcostisoneroadblockyouwon’thavetodealwith.
Seller Can Pay Loan Costs: In addition, theVA home loan allows the seller to pay all theVeteran’s reasonable closing costs,meaning insomecasesyoucouldbuyahomewithliterallynomoneyoutofyourownpocket.
No Mortgage Insurance:AnotherbigbenefittotheVA loan isnomonthlymortgage insurance.Anyotherloantypewithlessthana20%downpaymentrequireamortgageinsurancepaymenteachmonth.
But VA loans eliminate this expense. For a$250,000purchase,abuyerusinganFHA loanwouldhavetopay$271permonthinmortgageinsurance.Ahomebuyerwhousesaconventionalloan with a 5% down payment would have topay $186 per month.* Over a 5-year period, aVA home buyer would save at least $11,000 inmortgageinsurancepayments.
The VA Funding Fee: The VA loan requires anupfrontfee,usuallybetween2.15%and3.3%ofthe loanamount.But this canbewrapped intotheloanamount,orevenpaidforbytheseller.Ineithercase,youdon’thavetopaythefundingfeeout-of-pocket.
Easy to Apply:ApplyingforaVAloantopurchaseapropertyissimple.We’vetakentheguessworkout of the process by providing pre-screenedVA home loan professionals whowill take youthroughtheprocessstepbystep.
Take advantage of this tremendous benefit.You’veearnedit.Contact a reputable VA home loan lender todaytogetstarted.
General guidelines for eligibility are that youmustbeonactivedutyorhonorablydischarged,andserved:
•90daysinwartime•181daysinpeacetime•24continuousmonthsifenlistedafter9/7/1980•6yearsifintheNationalGuardorReserves
EligibilityFastFacts
• Youreligibilityneverexpires.Onceyouearnit,youcanbuyahomeatanytimeinthefuture.
• If you’ve purchased a homewith a VA loanbefore,youmayhaveremainingeligibilityorVAentitlement restorationmaybeavailabletoyou.
• Youmaybeeligibleifyouareanun-remarriedspouseofaservicememberwhowaskilledinactionorPOW/MIA.
Certificate of Eligibility: ThebestwaytofindoutifyouareeligibleistotalktoalicensedVAlenderwho can request your Certificate of Eligibility(COE) directly from the VA. Only approved VAlenders have access to VA’s WebLGY systemwhichcanreleaseaCOEinamatterofminutes.
How to know if You Are Eligible
5 Apply for a VA Home Loan • 1-866-437-7385
Era Dates Minimun services*WWII 09/16/40 – 07/25/47 90 continuous daysPeacetime 07/26/47 – 06/26/50 181 daysKorean 06/27/50 - 01/31/55 90 daysPost-Korean 02/01/55 - 08/04/64 181 daysVietnam 08/05/64 - 05/07/75 90 daysPost-Vietnam 05/08/75 - 09/07/80 181 daysPost- Vietnam 09/08/80 - 08/01/90 2 yearsPersian Gulf 8/2/90 - undetermined 2 years or period called to
active duty, not less than 90 days
ThelendermayneedyourDD-214(ifseparatedfromservice)andyour Request for COE Form 26-1880.Simplycompletethisform,thencallanapprovedVAlenderat1-866-437-7385orcomplete a contact request form.
VA Home Loan Eligibility Charts
*Veteransdischargedduetoaservice-connecteddisabilitymaybeeligibleforaVAhomeloaneventhoughtheyservedlessthantheminimumservicerequirement.
Thetimeframesaboveapplytothosealreadyseparatedfromservice.HerearesomeotherwaysinwhichyoumaybeeligibleforaVAhomeloan:
Minimum Service RequiredActive Duty (valid while on active duty)
90 continuous days (181 days in peace-time)
Active Reserve or National Guard 6 years in Selected ReservesUnmarried surviving spouse No time requirement
Spouse of POW/MIA Veteran has been POW/MIA for 90 days
Formoreinformation,seeour VA Home Loan Eligibility Page.
Onceyouknowyou’reeligible,theVAlenderwillreviewyourincome,assets,andcredittodetermineifyouqualify.
Thereareafewfactorsthatgointoqualifying:
Income:Themaximumdebt-to-incomeforaVAloanis41%.Debt-to-incomeissimplytheamountofallyourmonthlypaymentscomparedtogrossincome.Forinstanceifyoumake$5,000permonth,yourtotalmonthlypaymentsincludingthefutureVAloancan’texceed$2,050(41%of$5,000).Sotheloweryourpaymentsforthingslikecarloansandcreditcards,themorehouseyouwillbeabletobuy.
Will I Qualify for a VA loan?
6 Apply for a VA Home Loan • 1-866-437-7385
Thefastestandeasiestwaytoseeifyouqualifyisto speak to a VA loan officerwhowillexamineyourfullprofile.
How Much Can I Afford?
Thebestwaytomakesureyoudon’tspendtoomuchonahomeistocomeupwithafinalnumberthatyouwanttospendonahomeeachmonth.
Createabudgetandmakesurethere’sextraroominitforemergenciesandsavings.Ifpossible,meetwithacertifiedfinancialplannertomakesureyourfinancesarewheretheyshouldbetobuyahome.
Onceyouhavethefinalamountyouwanttospendeachmonthonyourhome,tellthenumbertoyourVAloanofficer.Heorshewillworkbackward,addinginprinciple,interest,propertytaxes,homeownersinsurance,andpossiblyhomeowner’sassociationdues,todetermineapurchasepricethatfitswithinyourdesiredbudget.
Assets: TheVAhome loandoesnot requireadownpayment.However, youmay still pay closingcostsifthesellerdoesnotpaythemforyou.(Yourrealestateagentisinchargeofnegotiatingthatthesellerpayclosingcosts.)Ifyoudoneedtopayanymoneyout-of-pocket,you’llneedtoproveyouhaveenoughtodoso.
Credit:YourVAlenderwillobtainacreditreportwhichwillshowyourscoreandcredithistory.Evenifyoufeelyoumaynothavethebestcreditscore,youstillmayqualifyforaVAloan.Thisloantypeisgenerallymorelenientaboutcreditscoresthanotherloanprograms.
Foreclosure and Bankruptcy:Ifyouhadaforeclosureorbankruptcy,youmustwaitatleast2yearsbeforeapplyingforaVAloan.IftheforeclosurewasonahomethatyoupurchasedwithaVAloan,youmaynotbeeligibleforanotherVAloan.
7 Apply for a VA Home Loan • 1-866-437-7385
Personal Information
• Yourbasicinformationlikename,address,andphonenumber• Previousaddressesforthepast2years• Datesofbirthandyearsofschoolcompletedforallapplicants• SocialSecuritynumbersforallapplicantsforcreditcheck• Raceandethnicityinformation(forgovernmentmonitoring-requestedonallmortgageloans)• CopyofvalidIDsuchasadriver’slicenseorgovernmentID• Statewhereyouplantopurchase• Ageofdependents
Military Information
• CopyofyourDD214ifseparatedfromthemilitary• Completed Request for COE form 26-1880• Statementofservicefromyourcommandingofficerifyouareonactiveduty• YourCertificate of Eligibility.Yourloanofficercanhelpyougetthis.
Employment/Income
• Name,address,phonenumber,anddatesofemploymentforallemployersoverthelast2years• 30days’worthofpaystubsorcurrentLES• Last2years’W2s• If self-employed: Last 2 years tax returnswith all schedules (if you have commissionor rental
income,youwillalsoneedtoprovidetaxreturns)• Copiesofsocialsecurity,pension,and/orretirementawardlettersandcorresponding1099s(ifyou
receivethistypeofincome)• Divorcedecreeandsettlementpaperwork(ifapplicable)
Assets
• 60days’bank statements for checkingand savingsaccounts showingenoughmoney for yourdownpayment(ifany)andclosingcosts(ifnotcoveredbytheseller)
• 60days’statementsforretirementaccounts• Realestatecurrentlyowned,ifany
Credit/Monthly Payments
• Yourloanofficerwillpullacreditreportthatshowsyourcurrentmonthlypayments.Butit’sgoodtoknowapproximateaccountbalancesandpayments.
• Amountpaideachmonthinchildcare• Explanationforlatepaymentsorotherless-than-perfectcredithistory• Bankruptcyanddischargepaperwork(ifapplicable)
VA Home Loan ChecklistAVAloantobuyahomeisapprovedlikeotherhomeloans,meaningincome,assets,andcreditwillbeexamined.Here’sachecklistofitemsyoumayneed.ContactaVAloanexpertwithanyquestionsbycalling1-866-437-7385orcompletingaone-minute form at MilitaryVALoan.com.
8 Apply for a VA Home Loan • 1-866-437-7385
VA Home Loans: The Best Way to Buy a Home, Hands Down
There’ssimplynobetterwaytobuyahomeintoday’smarketthanaVAhomeloan.Withnodownpaymentrequired,nomonthlymortgageinsurance,andmorelenientlendingstandards,theVAloanisoneofthebestbenefitsavailabletoyouasaVeteran.You’veearnedthisprivilege,sotakeadvantageofit.You’veearnedit.Contact a pre-screened VA lender here.
Quick List of VA Home Loan Advantages
• Nodownpaymentrequiredforhomepurchasesupto$417,000andupto$625,000inAlaskaandHawaii.
• Nomonthlymortgageinsurance• VAlimitstheamountyoucanbechargedforclosingcosts.• Nopenaltiesforpayingofftheloanearly• VAoffersassistanceandcounselingifyouhavetroublemakingpayments• Reasonableclosingcostscanbepaidforbytheseller• Youdon’thavetobeafirsttimehomebuyer• Youcanoftenre-useyourbenefitevenifyou’veuseditbefore• Morelenientcreditandincomeguidelinesthanmanyothermortgagetypes
Contact usforafreeVAmortgageratequoteandtoseeifyouqualifytobuyahomewithaVAhomeloan.
9 Apply for a VA Home Loan • 1-866-437-7385
The VA home loan not only lets you purchasea property, but lets you refinance with muchmore lenient requirements than other refinanceprograms.
The VA Streamline Refinance
The most popular type of VA refinance is theVA streamline, also called the Interest RateReductionRefinancingLoan,orIRRRL.ThisloanallowsyoutorefinanceyourcurrentVAloanwithnoappraisal,andverylittledocumentation.
Underwater Homes OK: If you have a VA loanwith an interest rate above today’s low rates,theVA streamline loan couldbeagreatway tosave money. There is no appraisal required, soit doesn’t matter if your home is “underwater,”meaningyouowemorethanitisworth.
No Income Verification Required: In addition,youwillnotbeaskedforyourLES,paystubs,bankstatements,W2s, or any other income or assetdocumentationinmostcases.TheVAstreamlinedoesn’t require you to prove the amount orstabilityofyourincome,nordoesitrequireyoutoprovehowmuchmoneyyouhaveinyourcheckingorsavingsaccounts.
The VA streamlinewas introduced in 1980, andwasbuilt fromthegrounduptobeano-hassle,fastway forVeteransand their families to savemoney. It’s simply thebest refinanceproduct intoday’smarket.
Quick VA Streamline Refinance tips.
• Noappraisalrequired.• NoincomeverificationrequiredbyVA,butthe
lendermaywantproofthatyouarecurrentlyemployed.
• Noverificationofcheckingorsavingsaccountsrequired.
• Requiresafundingfeeofonly0.5%• Closing costs can be wrapped into the new
loanamount.
Keepinmindthatsomelendersaddtheirown requirements forVA streamlines, sospeak to a few VA lenders for the bestoffer. Formore information, apply for a VA streamline refinance hereorsee our Streamline Refinance Page.
The VA Cash Out Refinance
Ifyouwanttotap intotheequityofyourhomeor refinanceanon-VA loan, theVAcashout couldbe the right loan for you.This typeof loandoes requirepaystubs,bankstatements,andacreditreport,butit’sagreatloanformanypurposes.
Receiving Cash at Closing
Ifyouhaveequityinyourhomeandareinneedofcashforanyreason,youmaybeable to use a VA cash out refinance. Youcanopenabigger loanamountthanyoucurrentlyowe,andtaketheexcessascashatclosing.
Forinstance, ifyouhavea$100,000loancurrently, youmaybe able to open up a$150,000 loan,and take theproceedsascash.
The VA Cash out requires an appraisal,andyoucanoftenopenaloanfor100%oftheappraisedvalue.Thisisamuchbiggerpercentage than you can get with othertypes of cash out refinances, such as anFHAorconventionalcashoutrefinance.
VAcashoutloansrequirefulldocumentationofincome,assets,andcredit.YoualsomaybesubjecttoasubsequentuseVAfundingfee, usually 3.3%, if you’ve used your VAhome loanbenefit before.Talk to a VA-approved lender to see if you qualify.
Check VA cash out interest ratesnowbycalling1-866-437-7385
VA Home Loans for Refinancing
10 Apply for a VA Home Loan • 1-866-437-7385
Refinancing a Non-VA Loan
ManyVeteransinthe2000sopenedanon-VAloantofinancetheirhomepurchase.PerhapsthelenderwasnotVAapproved,ortheysimplyweren’tknowledgeableabouttheVAloanprogram.
Ifyouhaveanon-VAloannow,itmeansyouarenoteligibleforaVAstreamlinerefinance.AVAcashoutrefinancemaybeagoodsolution.
Youcanrefinanceanon-VAloanatupto100%ofyourappraisedvalueinmostcases.Thismaybehelpfultosomeonewhohasanadjustablerateloan,optionARM,Alt-Aloan,orotherprivatebank-heldloan-especiallyifyou’velostequityinrecentyears.
Eliminate Monthly Mortgage Insurance
WithaVAcashoutloan,youcouldeliminatemonthlyFHAmortgageinsuranceorprivatemortgageinsuranceona conventional loan.BecauseVA loansdon’t requiremortgage insurance, you couldpayoffyourcurrentFHA,conventional,orUSDAloanandeliminatethecostlymonthlyexpenseofmortgageinsurance.
VA Cash Out Quick Tips
• Refinanceupto100%oftheappraisedvalueofyourhome.• Usethecashforanypurpose–payingoffotherdebt,collegetuition,ortobuyacar.• There’sagoodchanceyoucouldloweryourinterestratewhiletakingcashout.• Refinanceanon-VAloantolowertherateoreliminatemortgageinsurance
11 Apply for a VA Home Loan • 1-866-437-7385
Apply for a VA Home Loan
Whetheryouwanttopurchaseahomeorrefinanceyourcurrentloan,aVAhomeloanisagreatsolution.Contact one of our pre-screened, VA approved lenders togeta free ratequoteandbeonyourwaytoowningorrefinancingyourhome.
About MilitaryVALoan.com
HereatMilitaryVALoan.com,webelieveinmakingVAhomeloanssimple.We know it can be confusing wading through VA homeloanterminologyandprocedures.That’swhywematchyouwithexperiencedVAloanofficerswhohavehelpedmanyVeteranslikeyou.
Connect with us on our Facebook page and on Twitter.
MilitaryVALoan.comisanindependentlyowned,non-governmentsitethatisnotaffiliatedwithanygovernmentagency.NMLS #1019791
*ScenariosbasedonpropertyinWashingtonstate,700creditscore.Sources: http://www.va.gov/VETDATA/docs/SpecialReports/uniqueVeteransMay.pdfhttp://www.va.gov/opa/pressrel/pressrelease.cfm?id=1514
Credits
Pg 1: CourtesyDVIDSHUBPg 2:HousephotocourtesyPhotos.com/AndyDeanPg 2: Marines:photocourtesyDVIDSHUB/LanceCpl.J.ScanlanPg 5:CourtesyDVIDSHUB/SeamanH.GordonPg 7: CourtesyJupiterimages/Photos.comPg 9:CourtesyDVIDSHUB/1stLt.C.Morgan