Who is Eligible for a VA Loan?

by David Sanders 10/18/2020

Image by Ally Thomas from Pixabay

A VA loan can be the key to getting some of the most attractive terms possible on a home loan. Not only are lenders more forgiving on the minimum down payment requirements, but you may also be exempt from paying Private Mortgage Insurance until you've built up enough equity in the home. We'll look at how VA loans work and who's eligible for them, so you can decide if you're ready to take the plunge. 

Before You Get Started 

One of the most appealing things about a VA loan is the minimum down payment. In some cases, homebuyers aren't required to put anything down at all! But even considering this benefit, you're highly encouraged to build up your savings anyway. This is because you'll be charged a Funding Fee based on the size of your down payment. (This fee is donated to the VA department.) But even without the extra benefits, it's helpful to start with as much equity in the home as possible. 

Who's Eligible?

Here are the main eligibility criteria for VA loans:

  • Military members must be in the Navy, Army, Coast Guard, Air Force, and Marines 
  • You must have served at least 181 days during peacetime or at least 90 days during active war 
  • You can apply after five years of service in the Reserves or National Guard 
  • You must have a credit score of at least 620
  • Widows whose spouses are missing or lost to action. 
  • Certificate of Eligibility 

    While the US government secures the loan, it's the lender who sets the exact terms of the loan. To do this, the lender will take into account a number of factors before making their final decision. They'll use your Certificate of Eligibility (COE) to determine that you meet the minimum requirements. They'll also use the entitlement codes on the COE to determine if you qualify for additional consideration. For example, those who were given a Purple Heart will be exempt from paying the Funding Fee on their VA loan. 

    Highest Secured Maximums 

    The government will only secure the loan up to a certain amount. The amount varies based on the average home prices in the area in which you choose. For example, a person buying a home in New York City will have a higher secured maximum than someone buying in Indianapolis. If you're still on an active tour, you should know that you don't have to occupy the home immediately. 

    If you've already been granted a VA loan in the past, you're still eligible to apply for another one. However, the fees and terms are likely to be less forgiving than those on your first loan. 

    About the Author
    Author

    David Sanders

    Sanders Properties’ primary business aim is to provide each of you – our customers – with a complete host of personal services that simplify the buying process and ease the tension in buying a home. We do it by insuring all the essential information and all support service for buying a home are right at your fingertips. It’s our unique one stop shopping service, consisting of our seasoned real estate sales agents, who live in the county and know every nuance of every neighborhood; plus a consortium of top flight, cost efficient inspection engineers, legal professionals and mortgage brokers. And, if carpenters, electricians or painters are needed, we got them, too. Whatever you need, it’s here! Personal Service makes all the difference. It’s what makes you a satisfied home buyer. It’s what makes David Sanders the No. 1 Sales Agent in lower Rockland County. SandersHomes.com is synonymous with Rockland County homes, Hudson River homes, luxury homes, Palisades homes, Piermont homes,Grand View homes, Haverstraw homes, South Nyack homes, Nyack homes, Upper Nyack homes, Upper Grandview homes, Snedens Landing homes, Stony Point homes, Tappan homes, Orangetown homes, Clarkstown homes. You just might say, homes are us! Sanders Homes Real Estate is the premier realtor in Nyack NY, offering you complete access to all Rockland County homes for sale. Whether you’re looking for a simple Cape or a Hudson River estate, we can help you find the house that’s right for you. Our experienced, informed sales agents are waiting to open the right doors for you. So, when you need the right Nyack realtor to help you find the right Rockland County home, come to Sanders Homes Real Estate, we’re conveniently located in the heart of Nyack’s business center. Yes, come and discover, first-hand, our hallmarks: Integrity Trust Service Sales SERVING YOU. It’s our greatest privilege