va toolkit booklet

7/29/2019 VA ToolKit Booklet

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Real StrengtReal Advanta

VATOOLKIT


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The National Association o REALTORS, From 1944, when VA began helping veterans

purchase homes under the original GI Bill, through December 2007, more than 18.4

million VA home loan guaranties have been issued, with a total value of $967 billion. VA

ended fiscal year 2008 with almost 2.1 million active home loans, reflecting amortized

loans totaling $220.8 billion.

In fiscal year 2007, VA guaranteed 179,000 loans valued at $36.1 billion. During fiscal

year 2008, VAs programs for specially adapted housing helped 550 disabled veterans

with grants totaling more than $24.6 million.

To learn more go to: www.realtor.org/VAToolkit


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General Rules for Eligibility 4

MILITARY SERVICE REQUIREMENTS FOR VA LOAN ELIGIBILITY* .............................................4

ACTIVE DUTY SERVICE PERSONNEL.....................................................................................................5

SELECTED RESERVES OR NATIONAL GUARD ....................................................................................5

Obtaining a Certificate of Eligibility 7

REQUESTING A CERTIFICATE THROUGH THE VETERANS LENDER .........................................7

REQUESTING A CERTIFICATE FROM VA ..............................................................................................8

VETERANS DISCHARGED FROM REGULAR ACTIVE DUTY..........................................................8

VETERANS IN SELECTED RESERVES ......................................................................................................8

ACTIVE DUTY MEMBERS...........................................................................................................................8

VA ELIGIBILITY CENTER ADDRESS AND TELEPHONE NUMBER.................................................9

VETERANS WITH MORTGAGE PROBLEMS ........................................................................................9

ENHANCED VA MORTGAGE OPTIONS NOW AVAILABLE FOR VETERANS ........................ 11

BENEFIT TO THOSE IN FINANCIAL DISTRESS .................................................................................. 11

ARMS & HYBRID ARMS ............................................................................................................................. 11

SAH (SPECIALLY ADAPTED HOUSING) FACT SHEETOCTOBER 2008 .............................. 12

SPECIALLY ADAPTED HOUSING BENEFIT ........................................................................................ 13

USING THE SAH GRANT .......................................................................................................................... 14

ADAPTATIONS TYPICALLY NECESSARY FOR SAH: ...................................................................... 16

OTHER DESIGN FACTORS TO CONSIDER .......................................................................................... 18

HOW TO APPLY FOR BENEFITS ............................................................................................................ 18

FINANCING THE HOME .......................................................................................................................... 19

OTHER SIMILAR BENEFITS .....................................................................................................................19

VA Loan Guaranty Calculation Examples 20

Eligibility Frequently Asked Questions 25

VA 26-1880 29

CONTENTS


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General Rules for Eligibility

Military Service Requirements or VA Loan Eligibility*

Wartime

WWII: September 16, 1940 to July 25, 1947

Korean: June 27, 1950 to January 31, 1955

Vietnam: August 5, 1964 to May 7, 1975

The veteran must have at least 90 days on active duty and been discharged under

other than dishonorable conditions. I the veteran served ewer than 90 days, the

veteran may be eligible i discharged or a service connected disability.

Peacetime

July 27, 1947 to June 26, 1950

February 1, 1955 to August 4, 1964

May 8, 1975 to September 7, 1980 (Enlisted)

May 8, 1975 to November 16, 1981 (Of cer)


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NATIONAL ASSOCIATION OF REALT

* Applications involving other than honorable discharges will usually require urther develby VA. This is necessary to determine i the service was under other than dishonorable con

The veteran must have served at least 181 days o continuous active duty and been

discharged under other than dishonorable conditions. I the veteran served less than

181 days, the veteran may be eligible i discharged or a service connected disability.

Service ater September 7, 1980 (enlisted) or November 16, 1981 (of cer)

I the veteran was separated rom service which began ater these dates, the veteranmust have:

Completed 24 months o continuous active duty or the ull period (at least

181 days) or which the veteran were ordered or called to active duty and been

discharged under conditions other than dishonorable, or

Completed at least 181 days o active duty and been discharged under the specific

authority o 10 USC 1173 (Hardship), or 10 USC 1171 (Early Out), or have been

determined to have a compensable service-connected disability;

Been discharged with less than 181 days o service or a service-connected

disability. Individuals may also be eligible i they were released rom active duty

due to an involuntary reduction in orce, certain medical conditions, or, in some

instances or the convenience o the Government.

Gul War Service during period August 2, 1990 to date yet to be determined

If the veteran served on active duty during the Gulf War, the veteran must have:

Completed 24 months o continuous active duty or the ull period (at least 90

days) or which the veteran were called or ordered to active duty, and been

discharged under conditions other than dishonorable, or

Completed at least 90 days o active duty and been discharged under the specific

authority o 10 USC 1173 (Hardship), or 10 USC 1173 (Early Out), or have been

determined to have a compensable service-connected disability, or

Been discharged with less than 90 days o service or a service-connected

disability. Individuals may also be eligible i they were released rom active duty

due to an involuntary reduction in orce, certain medical conditions, or, in some

instances, or the convenience o the Government.

Active Duty Service PersonnelI the veteran is now on regular duty (not active duty or training), the veteran is

eligible ater having served 181 days (90 days during the Gul War) unless discharged

or separated rom a previous qualiying period o active duty service.

SELECTED RESERVES OR NATIONAL GUARDI the veteran is not otherwise eligible and the veteran have completed a total o 6

years in the Selected Reserves or National Guard (member o an active unit, attended

required weekend drills and 2-week active duty or training) and

Were discharged with an honorable discharge, or

Were placed on the retired list, or


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6|HOME LOAN GUARANTY SERVICES

Were transerred to the Standby Reserve or an element o the Ready Reserve other

than the Selected Reserve ater service characterized as honorable service, or

Continue to serve in the Selected Reserves

Individuals who completed ewer than 6 years may be eligible i discharged or a

service-connected disability.

The Individual also may be determined eligible if:

Are an unremarried spouse o a veteran who died while in service or rom a service

connected disability, or

Are a spouse o a serviceperson missing in action or a prisoner o war

Note: Also, a surviving spouse who remarries on or ater attaining age 57, and on

or ater December 16, 2003, may be eligible or the home loan benefit. However, a

surviving spouse who remarried beore December 16, 2003, and on or ater attaining

age 57, must apply no later than December 15, 2004, to establish home loan

eligibility. VA must deny applications rom surviving spouses who remarried beoreDecember 6, 2003 that are received ater December 15, 2004.

Eligibility may also be established for:

Certain United States citizens who served in the armed orces o a government al-

lied with the United States in WW II.

Individuals with service as members in certain organizations, such as Public Health

Service of cers, cadets at the United States Military, Air Force, or Coast Guard

Academy, midshipmen at the United States Naval Academy, of cers o National

Oceanic & Atmospheric Administration, merchant seaman with WW II service, and

others.


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Obtaining a Certificate of Eligibility

VA determines veterans eligibility and, i qualified, a certificate o eligibility will be

issued. Eligibility applications can involve:

An original determination o eligibility or the home loan benefit

A request to replace a lost certificate o eligibility A request for restoration of the benefit after payment in full of a previous VA home loan

Issuance o a certificate reflecting a current outstanding loan or refinance purposes

Requesting a Certificate Through the Veterans LenderIn many cases, the lender will be able to obtain a Certificate o Eligibility or the veteran

by using WebLGY. WebLGY is a web-based application that is able to determine

eligibility and issue an online Certificate o Eligibility in a matter o seconds. Not all

cases can be processed through WebLGY. I there is insuf cient data in VAs records,

the certificate will have to be requested using the procedures ollowing.


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REQUESTING A CERTIFICATE FROM VA

Complete VA Form 26-1880, Request or a Certificate o Eligibility or VA Home

Loan Benefits.

Send the completed Form 26-1880 and any supporting evidence (see 3 and 4

below) to VAs Winston-Salem Eligibility Center. Under normal circumstances aresponse can be anticipated in roughly 10 days. This time rame will vary during

periods o heavy activity.

Veterans should include photocopies o the most recent discharge or

separation papers covering active military duty, which show active duty dates

and type o discharge. I the veteran served on regular active duty (not a

reservist) and were discharged ater 1975 or have previously had a VA loan, it

may not be necessary to provide documentation o military service. However,

it is best to provide such evidence with VA Form 26-1880 i it is readily

available so as to avoid possible delays in processing the veterans request.

I the veteran is seeking restoration o a previously used benefit, the veteranshould include any evidence o payment in ull o prior loan (copy o HUD-1,

settlement statement or example). Normally VA receives notification that

a loan has been paid, but this does not always happen. VA determines the

veterans eligibility and, i qualified, VA will issue a certificate o eligibility to

be used in applying or a VA loan.

VETERANS DISCHARGED FROM REGULAR ACTIVE DUTY

For veterans separated ater January 1, 1950, the appropriate documentation o

the veterans military service is DD Form 214, Certificate o Release or Discharge

rom Active Duty. I discharged ater October 1, 1979, DD Form 214, copy 4

is appropriate. A photocopy o DD214 will suf ce. Do not submit an original

document.

VETERANS IN SELECTED RESERVES

Veterans who served in the Selected Reserve must provide documentation

suf cient to establish that the veteran served a minimum o 6 years with points

earned or weekend drills or active duty or training and received an honorable

discharge. Since there is no uniorm document similar to DD214 or proo o

service in the Selected Reserve, a number o dierent orms may be accepted.

For those who served in the Army or Air National Guard and were discharged

ater at least 6 years o service, NGB Form 22 may be suf cient.

Those who served in the Army, Navy, Air Force, Marine Corps or Coast Guard

Reserves may need to rely on a variety o orms. Oten it will be necessary tosubmit a combination o documents such as an Honorable Discharge certificate

together with a Retirement Points Statement.

ACTIVE DUTY MEMBERS

For those now on regular active duty and who have not been previously discharged

rom active duty service, the veteran must submit a statement o service which

includes the name o the issuing authority (base or command), and is signed by or


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at the direction o an appropriate of cial. The statement must identiy the veteran

(SSN), and provide the veterans date o entry on active duty and the duration at

any time lost. I the veteran remain on active Selected Reserve duty, the statement

o service should be rom the veterans unit CO and should cite the length o time

the veteran have served with the reserve unit.

VA Eligibility Center Address and Telephone NumberPlease send the veterans request or determination o Eligibility (VA Form 26-

1880, along with proo o military service) to:

VA Loan Eligibility Center

PO Box 20729

Winston-Salem, NC 27120

For overnight delivery:

VA Loan Eligibility Center

251 N. Main Street

Winston-Salem, NC 27155

Veterans with Mortgage ProblemsWASHINGTONMany home owners have ound it dif cult recently to pay

their mortgages, but quick intervention by loan counselors at the Department o

Veterans Aairs (VA) has actually reduced the number o veterans deaulting on

their home loans.

VA is reaching out to veteransboth those who use our home-loan guaranty

program and those who dont take advantage o our guarantiesto keep people

in their homes, said then Secretary o Veterans Afairs Dr. James B. Peake. Im

proud o our solid record o success in helping veterans and active-duty personnel

deal with financial crises.


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Accounting or much o this success are VA counselors at nine regional loan

centers who assist people with VA-guaranteed loans avoid oreclosure through

counseling and special financing arrangements. The counselors also can assist

other veterans with financial problems. VA counselors have helped about

74,000 veterans, active-duty members and survivors keep their homes since2000, a savings to the government o nearly $1.5 billion.

Depending on a veterans circumstances, VA can intercede with the borrower

on the veterans behal to pursue optionssuch as repayment plans, orbear-

ance, and loan modificationsthat would allow a veteran to keep a home.

Since 1944, when home-loan guaranties were oered with the original GI Bill,

VA has guarantied more than 18 million home loans worth $911 billion. Last year,

about 135,000 veterans, active-duty service members and survivors received

loans valued at nearly $24 billion.

About 2.3 million home loans still in eect were purchased through VAs

home-loan guaranty program, which makes home loans more aordable or

veterans, active-duty members and some surviving spouses by protecting


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lenders rom loss i the borrower ails to repay the loan. More than 90 percent o

VA-backed home loans were given without a downpayment.

To obtain help from a VA financial counselor, veterans can call VA toll-free at

1-877-827-3702. Information about VAs home loan guaranty program can be

obtained at www.homeloans.va.gov.

Enhanced VA Mortgage Options Now Available or Veterans

BENEFIT TO THOSE IN FINANCIAL DISTRESS

Veterans with conventional home loans now have new options or refinancing

to a Department o Veterans Aairs (VA) guaranteed home loan. These new

options are available as a result o the Veterans Benefits Improvement Act o

2008, which the President signed into law on October 10, 2008.

These changes will allow VA to assist a substantial number o veterans with

subprime mortgages refinance into a saer, more afordable, VA guaranteed

loan, said then Secretary o Veterans Afairs Dr. James B. Peake. Veterans infinancial distress due to high rate subprime mortgages are potentially the greatest

beneficiaries.

VA has never guaranteed subprime loans. However, as a result o the new law

VA can now help many more veterans who currently have subprime loans.

The law makes changes to VAs home loan refinancing program. Veterans

who wish to refinance their subprime or conventional mortgage may now do

so or up to 100 percent o the value o the property. These types o loans were

previously limited to 90 percent o the value.

Additionally, Congress raised VAs maximum loan amount or these types o

refinancing loans. Previously, these refinancing loans were capped at $144,000.With the new legislation, such loans may be made up to $729,750 depending on

where the property is located.

Increasing the loan-to-value ratio and raising the maximum loan amount will

allow more qualified veterans to refinance through VA, allowing or savings on

interest costs or even potentially avoiding oreclosure.

ARMS & HYBRID ARMS

Originally set to expire at the end o this month, VAs authority to guaranty

Adjustable Rate Mortgages (ARMs) and Hybrid ARMs was also extended under

this new law through September 30, 2012. Unlike conventional ARMs and hybridARMs, VA limits interest rate increases on these loans rom year to year, as well

as over the lie o the loans.

Since 1944, when home loan guaranties were oered with the original GI Bill,

VA has guaranteed more than 18 million home loans worth over $911 billion.

This year, about 180,000 veterans, active duty servicemembers, and survivors

received loans valued at about $36 billion.


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SAH (Specially Adapted Housing) Fact SheetOctober 2008Veterans or servicemembers who have specific service-connected disabilities

may be entitled to a grant rom the Department o Veterans Aairs (VA) or

the purpose o constructing an adapted home or modiying an existing home to

meet their adaptive needs. The goal o the Specially Adapted Housing (SAH)Grant Program is to provide a barrier-ree living environment that aords the

veterans or servicemembers a level o independent living he or she may not

normally enjoy.

Grants provided under the SAH program may also be used outside the United

States. However, it must be reasonably practicable or VA to provide assistance

in acquiring specially adapted housing or the designated country or political

subdivision outside the United States.

There are two types o grants administered by VA, which are available to

assist severely disabled veterans or servicemembers in adapting housing to their

special needs.

Eligibility & Statutory Requirements

The Specially Adapted Housing Grant is available to veterans or servicemembers

who are entitled to compensation or permanent and total service-connected

disability due to:

The loss, or loss o use, o both lower extremities such as to preclude

locomotion without the aid o braces, crutches, canes, or a wheelchair.

Blindness in both eyes having only light perception, plus loss or loss o use o

one lower extremity.

The loss, or loss o use, o one lower extremity together with (1) residuals o

organic disease or injury, or (2) the loss or loss o use o one upper extremity.

Item (1) and Item (2) above must so aect the unctions o balance or

propulsion as to preclude locomotion without the aid o braces, crutches,

canes, or a wheelchair.

The loss, or loss o use, o both upper extremities, so as to preclude use o the

arms at or above the elbows.

The permanent and total disability is due to a severe burn injury (as so

determined).

NOTE:Veterans must also meet the following requirements: It must be medically easible or the veteran or servicemember to reside

in the house.

The house must be adapted to be suitable to the veterans or

servicemembers needs or living purposes.

It must be financially easible or the veteran or servicemember to acquire

the house, with the assistance provided by the grant.


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NATIONAL ASSOCIATION OF REALTO

The current or most recent VA Rating Decision issued by the Veterans Service

Center o jurisdiction establishes the veterans or servicemembers basic

eligibility or a Specially Adapted Housing Grant. The VA Rating Decision is

subject to review and revision.

SPECIALLY ADAPTED HOUSING BENEFIT

An eligible veteran or servicemember may receive a VA grant o not more

than 50 percent o the cost o a specially adapted house, up to the aggregate

maximum amount allowable by law. The current maximum grant amount

allowable at the time o this publication is $60,000. This amount will be

adjusted annually based on a cost-o-construction index. The first adjustment

will occur October 1, 2009, and each October 1 thereater. Any uture

adjustments will increase the grant amounts or leave them unchanged.

Public Law 109-233 authorized up to three usages o grant benefits. Public

Law 110-289 provided or annual increases in the maximum grant amount, to

keep pace with the residential cost-o-construction index. When the maximumgrant amounts are increased, veterans or servicemembers who have not used

the assistance available to them up to the allowable three times may be entitled

to a grant equal to the increase in the maximum grant amount at that time.

Any real property purchased, constructed, or adapted with the proceeds o a

specially adapted housing grant must be located:

within the United States, which, includes the several States, Territories, and

possessions, including the District o Columbia, and the Commonwealths o

Puerto Rico and the Northern Mariana Islands; or,


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outside the United States, in a country or political subdivision which allows

individuals to have or acquire a beneficial property interest, and in which

the Secretary, in his or her discretion, has determined that it is reasonably

practicable or the Secretary to provide assistance in acquiring specially

adapted housing.

Using the SAH GrantAn eligible veteran or servicemember has the option to use up to the ull amount

o the grant under any one o the ollowing plans:

Plan (1). The veteran or servicemember may elect to construct a home on

land to be acquired or that purpose.

Plan (2). The veteran or servicemember may build a home on land already

owned i it is suitable or specially adapted housing.

Plan (3). The veteran or servicemember may remodel an existing home i itcan be made suitable or specially adapted housing.


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Plan (4). When the veteran or servicemember has already acquired a

specially adapted home (without the assistance o a VA grant), the grant may

be applied against the unpaid principal mortgage balance o the home.

A temporary grant (TRA) may be available to veterans and servicemembers

who are/will be temporarily residing in a home owned by a amily member.This assistance may be used to adapt the amily members home to meet the

veteran or servicemembers special needs at that time. TRA grants are not

subject to the suitability and financial requirements noted in questions 4(b)

and (c). The TRA grant program is a pilot program and is scheduled to end on

December 31, 2011.

Under Plan (4) above, i a veteran or servicemember already has a specially

adapted home that is owned ree and clear, the veteran or servicemember still

may be entitled to receive a portion o the grant. It depends on the needs o the

veteran or servicemember. Additional adaptations may be installed, i they are

determined to be necessary. Should the veteran or servicemember decide tobuy or build another specially adapted home, the total benefit, or portions o the

maximum grant allowable not yet used, could be applied toward installation o

adaptations on that house.

A second grant may be obtained or another home or or urther capital

improvements on the veterans or servicemembers present home?

The grant, up to the maximum amount, can be used up to three times. For

the purpose o the ollowing examples, the current maximum allowable grant

amount o $60,000 is used:

Example (1). I the total cost or the construction and land were $80,000,

the maximum grant would be 50 percent o the $80,000, or $40,000. The

veteran or servicemember would then be able to claim a urther grant o$20,000 at a later date or the repair or replacement o current adaptations, or

the installation o additional adaptations, or or the purchase, construction, or

adaptation o another home (as long as he or she has not already received the

grant a total o three times).

Example (2). I the veteran or servicemember had $50,000 o prior grant

usage at the time o an increase in the maximum grant amount to $60,000, the

$10,000 dierence may be used to assist in acquiring another adapted home or

installing additional adaptations in the same home (as long as he or she has not

already received the grant a total o three times).

A veteran or servicemember may be entitled to state or local exemptions.

There are many States that do provide such relie rom taxes, either in whole orin part. The Specially Adapted Housing Agent will be able to provide a veteran or

servicemember with more detailed inormation.


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ADAPTATIONS TYPICALLY NECESSARY FOR SAH:

Unless there are no-step entries or slopes having less than an 8 percent

grade (1:12), at least two ramps (a vertical platorm or similar type lit may

be used in lieu o one ramp, but the lit must have a battery or generator

backup system) suitable or entry and exit are required, one o which shallbe located so as not to expose the veteran or servicemember to a potential

fire hazard, such as placement necessitating passage through a kitchen,

garage or utility room containing heating equipment. Ramps or lits must be

permanently installed, treated to prevent slipping when wet, and the slope

not to exceed 8 percent. The minimum width acceptable is 3 eet 6 inches (4

eet or new ramps), and railings must be provided i the height and length o

the ramp indicate any potential or a hazard. Ramp and lit platorms must be

a minimum o 5 eet by 5 eet in size to allow or turning the wheelchair and

be equipped with protective railings i the height o the platorm presents a

potential hazard. There will be no dierence in elevation between the interior

floor level and exterior platorms. Ramp platorms must be provided every 30eet o the ramp or walkway and at every 90-degree turn.

In all new construction, doorways must be at least 36 inches wide. Doorways

in existing homes must be at least 32 inches wide.

Halls must be a minimum o 48 inches wide in all new construction. Hallways

in existing homes must be at least 42 inches wide.

A garage or carport should be o suf cient width and height to allow

unrestricted wheelchair maneuverability alongside a car and ease o entry

and exit with all accessible vans.

Passageways between the home proper and the garage or carport should

be sheltered to prevent exposure o the veteran or servicemember to direct

sunlight or inclement weather.

At least one bathroom, convenient to the veterans or servicemembers

bedroom, must contain very generous floor areas providing ree wheelchair

maneuverability (with at least a 5 oot turning radius), with placement o all

fixtures in a manner permitting the veteran or servicemember unimpeded

4 oot access to each fixture. Bathroom flooring material must be non-

slip under both wet and dry conditions. Washbasins o the hung type,

rather than pedestal, should be af xed at a height enabling the wheelchair

to maneuver below the fixture to allow close approach or washing andshaving convenience. Washbasin drainpipes must be installed to minimize

the possibility o abrasions. A mirror, at a suitable level or use rom the

wheelchair, must be provided and may be achieved by a lower medicine

cabinet to which the veteran or servicemember is to have access. Faucets

or the tub and shower also must be accessible rom the wheelchair or

water temperature control beore, as well as during, immersion. Adequate


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thermostatic or pressure-balance controls must be installed to avoid sudden

change in the water temperature. Adequate grab bars, capable o bearing

the veterans or servicemembers weight and conveniently placed, must be

installed or the tub and shower. Stall showers must be large enough (5x 5)

to allow or a built-in bench, i desired. There must be no curb between thestall and bathroom (floor drain can be placed in a back corner o the stall),

and the shower stall opening should be the same width as other doorways.

The toilet fixture or seat should be raised, i necessary, or the veteran or

servicemembers convenience; armrest, installed in a manner to support the

veterans or servicemembers weight in transerring must be included, and

provisions should be made or a suitable back support. Installation o a bidet

may be appropriate or certain hand/arm injuries.

All hot water pipes, steam pipes, room radiators, or similar items, which may

constitute a hazard insoar as burns, abrasions, etc., are concerned, must be

concealed or properly covered.


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Wall switches and electrical outlets should be within reach rom the

wheelchair, minimum 18 inches and maximum 48 inches, rom the floor. Fuse

boxes, thermostats, and other utility and appliance controls must be within

reach rom a wheelchair. Windows should be operable rom a wheelchair.

Automatically operated entry and garage doors are a great convenience,direct control activated by key or button. Whole house vacuum systems may

be appropriate or certain severe burn injuries.

Carpeting installed in specially adapted housing must be o a low pile, closely

woven type. Hardwood floors may be appropriate or certain severe burn

injuries.

At least one automatic smoke detector/fire detection system and/or carbon

monoxide detector shall be installed in the unit.

Other adaptations with the approval o VA.

NOTE:Veterans or servicemembers who are fitted with lower extremity prostheses,who have loss or loss the use of both arms at or above the elbow, or have severe burn

injuries alleviating wheelchair use, may not need some of the above listed requirements

but may require other specific types of adaptations. This pamphlet does not go into

detail regarding unusual or complex problems, which conceivably can arise. For more

information, contact the veterans local VA Specially Adapted Housing Agent. Addi-

tional information may be also obtained from the veterans VA Regional Loan Center.

OTHER DESIGN FACTORS TO CONSIDER

Level building site.

Ample concrete walks.

Relatively maintenance ree.

Sliding interior doors, easily operable rom wheelchair.

Zone controlled HVAC system and generator backup.

Special adaptation o the kitchen area or the veteran or servicemembers use,

i desired.

Other design actors with the approval o VA.

How To Apply For BenefitsA veteran may apply at any VA of ce, but preerably the VA of ce where theveterans or servicemembers claim records are located. A determination will be

made as to basic eligibility and whether it is medically easible or the veteran or

servicemember to reside in a specially adapted home.

A notice o eligibility (rating decision) or specially adapted housing will be

sent to the veteran or servicemember. A VA Specially Adapted Housing Agent

will visit the veteran or servicemember and counsel him/her in every way pos-

sible in using the grant. The veteran or servicemember will also be urnished a


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supplemental application orm (VA Form 26-4555c, Veterans Supplemental

Application or Assistance in Acquiring Specially Adapted Housing) to be filled

out when he/she is ready to obtain the grant. When the veterans or service-

members request or the grant is approved, he/she will receive a commitment

letter rom VA setting orth the terms and conditions under which the undswill be made available. Any contract executed by the veteran or servicemember

must include the condition that it is subject to VA approval and his/her obtain-

ing the grant.*

Specially Adapted Housing Agents specialists are available and will

provide assistance to the veteran or servicemember. However the veteran

or servicemember is allowed reedom o choice when it comes to location,

financing and contractor.

VA Pamphlet 26-13, Handbook or Design: Specially Adapted Housing,

provides guidelines, recommendations, and illustrations to assist the physically

handicapped veteran or servicemember and the architect/designer to construct

or remodel a home so that its design ully meets all o the veterans orservicemembers special needs.

Financing the HomeI the veteran or servicemember served World War II or later who has GI housing

entitlement and can qualiy or a GI home loan and the grant. I financing is not

available VA may make a direct loan provided the veteran has GI home loan

entitlement and qualifies rom a credit standpoint.

Other Similar Benefits

Most veterans and servicemembers who receive a Specially Adapted HousingGrant are eligible or Veterans Mortgage Lie Insurance (VMLI) covering

the unpaid principal, not to exceed $90,000, on the mortgage loan. VA

representatives will explain this program and assist eligible veterans in applying

or this protection using VA Form 29-8636 (Veterans Mortgage Lie Insurance

Statement). However, VMLI can only be issued to veterans age 69 and younger.

Once issued, VMLI will remain in eect, regardless o age, i there is mortgage

indebtedness. Questions concerning VMLI should be directed to the Insurance

Center located in Philadelphia at 1-800-669-8477.

Yes, an eligible veteran or servicemember may be entitled to the Home

Improvement and Structural Alterations (HISA) benefit, which has a current

maximum o $4,100 or a service-connected disability and $1,200 or a nonser-vice-connected disability. The Prosthetics and Sensory Aids Service at the nearest

VA health care acility will urnish additional inormation concerning this benefit

upon request (including how to file VA Form, 10-0103, Veterans Application or

Assistance in Acquiring Home Improvement and Structural Alterations).

* Veterans and servicemembers may not be entitled to reimbursement o certain costs incurred prior to receidisability rating and/or in anticipation o receipt o a grant approval. Please contact VA prior to incurring such


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VA Loan Guaranty Calculation Examples

The ollowing examples illustrate some common situations involving VA-guaranteed

loans. They are by no means comprehensive. Due to variations in the amount o

entitlement available to an individual veteran, loan limits or individual counties, and

purchase prices or homes, situations may arise which are not covered here. Lenders

are encouraged to contact the appropriate VA Regional Loan Center prior to closing

a loan i there are questions about the VA guaranty calculation.


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Example 1Veteran has ull entitlement available and is purchasing a home or $300,000

where the county loan limit is $417,000.

$417,000 x 25% = $104,250 Maximum Guaranty & Available Entitlement$300,000 x 25% = $75,000 Guaranty & Down Payment Combination Required

Since VAs guaranty is limited to the lesser o 25% o the county loan limit or 25%

o the loan amount, VA will guaranty $75,000 on Veterans $300,000 loan in this

county. A down payment should not be required.

Example 2Veteran has used $48,000 o entitlement on a prior loan, which may not be restored,

and is purchasing a home or $320,000 where the county loan limit is $625,000.

$625,000 x 25% = $156,250 Maximum Guaranty

$156,250 $48,000 = $108,250 Entitlement Available

$108,250 x 4 =$433,000 Maximum Loan Amount with 25% Guaranty

Since the proposed loan amount will be less than $433,000, the lender will receive

25% VA Guaranty on the loan o $320,000. A down payment should not be required.

Example 3Veteran has used $104,250 o entitlement on a prior loan, which may not be restored,

and is purchasing a home or $380,000 where the county loan limit is $815,000.

$815,000 x 25% =$203,750 Maximum Guaranty

$203,750 $104,250= $99,500 Entitlement Available


Since the proposed loan amount will be less than $398,000, the lender will receive

25% VA Guaranty on the loan o $380,000. A down payment should not be required.


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Example 4Veteran has ull entitlement available and is purchasing a home or $480,000

where the county loan limit is $417,000.

$417,000 x 25% = $104,250 Maximum Guaranty & Entitlement Available$104,250 / $480,000 = 21.72% Guaranty

Since VAs Guaranty will be less than 25%, a down payment will likely be required to

meet investor requirements.

$480,000 x 25% = $120,000

$120,000 $104,250 = $15,750 Down Payment

Example 5Veteran has used $27,500 o entitlement on a prior loan, which may not be restored,and is purchasing a home or $320,000 where the county loan limit is $417,000.

$417,000 x 25% = $104,250 Maximum Guaranty

$104,250 $27,500 = $76,750 Entitlement Available

$76,750 / $320,000 = 23.98% Guaranty


Since VAs Guaranty will be less than 25%, a down payment will likely be required to

meet investor requirements.

$320,000 x 25% = $80,000

$80,000 $76,750 = $3,250 Down Payment

Example 6Veteran has used $36,000 o entitlement on a prior loan, which may not be restored, and is

purchasing a home or $120,000 where the county loan limit is $417,000.

Since the loan amount will not be over $144,000, the veterans additional entitlement cannot be

used. Thereore, the guaranty would be 0%: $0 / $120,000


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Example 7Veteran has ull entitlement available and is purchasing a home or $800,000 where the county loan

limit is $729,750.

$729,750 x 25% = $182,437.50 Maximum Guaranty & Entitlement Available

$182,437.50 / $800,000 = 22.81% Guaranty

$800,000 x 25% = $200,000 Guaranty & Down Payment Combination Required

$200,000 $182,437.50 = $17,562.50 Down Payment

Note: Lenders should contact their investor to determine secondary market requirements.

Loan limits linkhttp://www.homeloans.va.gov/docs/2009_county_loan_limits.pd


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Eligibility Frequently Asked Questions

Questions about who is eligible for a VA loan and reuse of eligibility for another VA loan.

Q: How do I apply for a VA guaranteed loan?

A: You can apply or a VA loan with any mortgage lender that participates in

the VA home loan program. At some point, you will need to get a Certificate o

Eligibility rom VA to prove to the lender that you are eligible or a VA loan.

Q: How do I get a Certificate of Eligibility?

A: Complete a VA Form 26-1880, Request or a Certificate o Eligibility: You can

apply or a Certificate o Eligibility by submitting a completed VA Form 26-1880,

Request For A Certificate o Eligibility For Home Loan Benefits, to the Winston-

Salem Eligibility Center, along with proo o military service. In some cases it

may be possible or VA to establish eligibility without your proo o service.However, to avoid any possible delays, its best to provide such evidence.

Q: Can my lender get my Certificate of Eligibility for me?

A: Yes, its called Web LGY. Most lenders have access to the Web LGY system.

This Internet based application can establish eligibility and issue an online

Certificate o Eligibility in a matter o seconds. Not all cases can be processed

through Web LGYonly those or which VA has suf cient data in our records.

However, veterans are encouraged to ask their lenders about this method o

obtaining a certificate.

Q: What is acceptable proof of military service?

A: I you are still serving on regular active duty, you must include an original

statement o service signed by, or by direction o, the adjutant, personnel of cer,

or commander o your unit or higher headquarters which identifies you and your

social security number, and provides your date o entry on your current active

duty period and the duration o any time lost.

I you were discharged rom regular active duty ater January 1, 1950, a copy

o DD Form 214, Certificate o Release or Discharge From Active Duty should

be included with your VA Form 26-1880. I you were discharged ater October 1,

1979, DD Form 214 copy 4 should be included. A PHOTOCOPY OF DD214 WILL

SUFFICEDO NOT SUBMIT AN ORIGINAL DOCUMENT.I you are still serving on regular active duty, you must include an original

statement o service signed by, or by direction o, the adjutant, personnel of cer,

or commander o your unit or higher headquarters which shows your date o

entry on your current active duty period and the duration o any time lost.


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I you were discharged rom the Selected Reserves or the National Guard, you

must include copies o adequate documentation o at least 6 years o honorable

service. I you were discharged rom the Army or Air Force National Guard, you

may submit NGB Form 22, Report o Separation and Record o Service, or NGB

Form 23, Retirement Points Accounting, or its equivalent. I you were dischargedrom the Selected Reserve, you may submit a copy o your latest annual points

statement and evidence o honorable service. Unortunately, there is no single

orm used by the Reserves or National Guard similar to the DD Form 214. It is

your responsibility to urnish adequate documentation o at least 6 years o

honorable service.

I you are still serving in the Selected Reserves or the National Guard, you

must include an original statement o service signed by, or by the direction

o, the adjutant, personnel of cer, or commander o your unit or higher

headquarters showing the length o time that you have been a member o

the Selected Reserves. Again, at least 6 years o honorable service must be

documented.

Q: How can I obtain proof of military service?

A:Standard Form 180, Request Pertaining to Military Records, is used to apply

or proo o military service regardless o whether you served on regular active

duty or in the selected reserves. This request orm is NOT processed by VA.

Rather, Standard Form 180 is completed and mailed to the appropriate custodian

o military service records. Instructions are provided on the reverse o the orm

to assist in determining the correct orwarding address.

Q: I have already obtained one VA loan. Can I get another one?

A: Yes, your eligibility is reusable depending on the circumstances. Normally, i

you have paid o your prior VA loan and disposed o the property, you can have

your used eligibility restored or additional use. Also, on a one-time only basis,

you may have your eligibility restored i your prior VA loan has been paid in ull

but you still own the property. In either case, to obtain restoration o eligibility,

the veteran must send a completed VA Form 26-1880 to our Winston-Salem

Eligibility Center. To prevent delays in processing, it is also advisable to include

evidence that the prior loan has been paid in ull and, i applicable, the property

disposed o. This evidence can be in the orm o a paid-in-ull statement rom

the ormer lender, or a copy o the HUD-1 settlement statement completed in

connection with a sale o the property or refinance o the prior loan.


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Q: I sold the property I obtained with my prior VA loan on an assumption.Can I get my eligibility restored to use for a new loan?

A: In this case the veterans eligibility can be restored only i the qualified

assumer is also an eligible veteran who is willing to substitute his or her available

eligibility or that o the original veteran. Otherwise, the original veteran cannothave eligibility restored until the assumer has paid o the VA loan.

Q: My prior VA loan was assumed, the assumer defaulted on the loan, andVA paid a claim to the lender. VA said it wasnt my fault and waived thedebt. Now I need a new VA loan but I am told that my used eligibility cannot be restored. Why?

Or,

Q: My prior loan was foreclosed on, or I gave a deed in lieu of foreclosure,or the VA paid a compromise (partial) claim. Although I was released

from liability on the loan and/or the debt was waived, I am told that Icannot have my used eligibility restored. Why?

A: In either case, although the veterans debt was waived by VA, the Government

still suered a loss on the loan. The law does not permit the used portion o the

veterans eligibility to be restored until the loss has been repaid in ull.

Q: Only a portion of my eligibility is available at this time because myprior loan has not been paid in full even though I dont own the propertyanymore. Can I still obtain a VA guaranteed home loan?

A: Yes, depending on the circumstances. I a veteran has already used a portion

o his or her eligibility and the used portion cannot yet be restored, any partial

remaining eligibility would be available or use. The veteran would have to

discuss with a lender whether the remaining balance would be suf cient or the

loan amount sought and whether any down payment would be required.

Q: Is the surviving spouse of a deceased veteran eligible for the home loanbenefit?

A: The unmarried surviving spouse o a veteran who died on active duty or

as the result o a service-connected disability is eligible or the home loan

benefit. I you wish to make application or the home loan benefit as a surviving

spouse, contact our Winston-Salem Eligibility Center. In addition, a surviving

spouse who obtained a VA home loan with the veteran prior to his or her death(regardless o the cause o death), may obtain a VA guaranteed interest rate

reduction refinance loan. For more inormation, contact our Winston-Salem

Eligibility Center.


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NOTE: Also, a surviving spouse who remarries on or ater attaining age 57, and on

or ater December 16, 2003, may be eligible or the home loan benefit. However,

a surviving spouse who remarried beore December 16, 2003, and on or ater

attaining age 57, must apply no later than December 15, 2004, to establish home

loan eligibility. VA must deny applications rom surviving spouses who remarried

beore December 16, 2003 that are received ater December 15, 2004.

Q: Are the children of a living or deceased veteran eligible for the homeloan benefit?

A: No, the children o an eligible veteran are not eligible or the home loan

benefit.


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REQUEST FOR A CERTIFICATE OF

ELIGIBILITY

TO

Department of Veterans AffairEligibility CenterP.O. Box 20729Winston-Salem, NC 27120

NOTE: Please read information on reverse before completing this form. If additional space is required, attach a separate sheet.

1. FIRST-MIDDLE-LAST NAME OF VETERAN 2. DATE OF BIRTH 3. VETERAN'S DAYTIME TELEPHONE NO.

4A. ADDRESS OF VETERAN (No., street or rural route, city or P.O., Stateand ZIP Code)

5. MAIL CERTIFICATE OF ELIGIBILITY TO: (Complete ONLY if the Certificate is to mailed to an address different from the one listed in Item 4A)

OMB Control No. 2Respondent Burden: 1

6. MILITARY SERVICE DATA (ATTACH PROOF OF SERVICE - SEE PARAGRAPH "D" ON REVERSE)

VA FORM

APR 2008 26-1880EXISTING STOCKS OF VA FORM 26-1880, JAN 2006,

WILL BE USED.

11A. DATE CERTIFICATE ISSUED 11B. SIGNATURE OF VA AGENT

FOR VA USE ONLY

FEDERAL STATUTES PROVIDE SEVERE PENALTIES FOR FRAUD, INTENTIONAL MISREPRESENTATION, CRIMINALCONNIVANCE OR CONSPIRACY PURPOSED TO INFLUENCE THE ISSUANCE OF ANY GUARANTY OR INSURANCE BY THESECRETARY OF VETERANS AFFAIRS.

C. NAME (Show your name exactly as it appearson your separation papers or Statement of Service)

A. ITEMB. PERIODS OF ACTIVE SERVICE

DATE FROM DATE TO

3.

4.

D. SOCIAL SECURITY

NUMBER

E. SERVICE

NUMBER (If different fromSocial Security No.)

F. BRAN

SERV

7A. WERE YOU DISCHARGED, RETIRED OR SEPARATED FROM SERVICE BECAUSE OF DISABILITY

OR DO YOU NOW HAVE ANY SERVICE-CONNECTED DISABILITIES?

7B. VA CLAIM FILE NUMBER

C-

8. PREVIOUS VA LOANS (Must answer N/A if no previous VA home loan. DO NOT LEAVE BLANK)

I CERTIFY THAT the statements herein are true to the best of my knowledge and belief.

9. SIGNATURE OF VETERAN (Do NOT print) 10. DATE SIGNED

A. ITEM

1.

2.

3.

4.

5.

6.

B. TYPE(Home, Refinance,

Manufactured Home,or Direct)

C. ADDRESS OF PROPERTYD. DATEOF LOAN

E. DO YOUSTILL OWN

THE PROPERTY?(YES/NO)

F. DATE PROPERTY WASSOLD (Submit a copy of

HUD-1, SettlementStatement, if available)

G. VA LOAN N(If know

(If "Yes," complete Item 7B)

1.

2.

YES NO

4B. E-MAIL ADDRESS OF VETERAN (If applicable)


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The National Association o REALTORS, The Voice or Real Esis Americas largest trade association, representing more than 1.3 m

members involved in all aspects o the residential and commercial real e

industries. For more inormation, please visit www.REALTOR.org.

The Department o Veterans Afairs (VA) was establisheMarch 15, 1989, succeeding the Veterans Administration. It is responsib

providing ederal benefits to veterans and their amilies. Headed by the Secr

o Veterans Aairs, VA is the second-largest o the 15 Cabinet departments

operates nationwide programs or health care, financial assistance and burial ben

From 1944, when VA began helping veterans purchase homes under the original G

through December 2007, more than 18.4 million VA home loan guaranties have

issued, with a total value o $967 billion. VA ended fiscal year 2008 with almost 2.1 m

active home loans, reflecting amortized loans totaling $220.8 billion.

va toolkit booklet

Documents