Veterans Affairs or VA Loans are loans processed through the Department of Veterans Affairs. It should be noted however, that they do not issue the loan themselves since these are provided for by banks, mortgage loan companies and brokers like us. The role of the Department of Veteran Affairs is to secure the loan by insuring a part of it in case of default and this is the reason why many lenders like to fund them.
Why go for a VA Loan?
Unlike other loans VA Loans have lower interest rate than with conventional loans. Also, there is no need for a down payment and a mortgage insurance.
VA Loans are highly sought after especially by those who have member of the family who are part of the military or had served the military. It is a great way to secure houses and real estate with a less stressful method of payment and acquisition.
Who are allowed to get VA loans?
VA loans are given to those who are in active duty or separated from military service in a situation “other than dishonorable discharge.” The following are also qualified for VA home loans:
- Veterans must meet length-of-service requirements
- Service members on active duty must serve for a minimum period
- Reservists and National Guard members may be eligible
- Surviving spouses of deceased veterans may qualify
How to get Certificate of Eligibility?
In order to be eligible for a VA loan, you need to be issued a Certificate of Eligibility from the VA. According to Greg Nelms, VA chief of loan policy, says an applicant can get a COE in three ways:
- Use your eBenefits account, where many of your other VA benefits can be found
- A VA-approved lender can obtain it for you
- Complete a Request for Certificate of Eligibility form and mail it to a regional loan center
The COE is most often obtained through a lender, Nelms says, by accessing a web-based system called WebLGY.
You will also be needing certain additional documents depending on your situation in order to be issued a COE. Signed evidence of the following might be required:
- A statement of military service
- The reason for your separation and record of service
- Particular forms showing discharge information
- Your surviving-spouse status
Once acquired you are ready to begin applying for a VA Loan. Before proceeding however it is important that there are additional key requirements and specifics that you should know and that is where we can help you by referring you to one of our loan officers. They would guide you through the rest of the process and assure you that you get the loan that you want.