If you are a veteran or active military, you shouldn’t have to worry about how you can afford housing. The VA home loan program helps veterans purchase homes by offering special loan terms and interest rates usually lower than other mortgage loans. This program provides support and a path to homeownership to veterans and active military. In this blog, we will explore the eligibility requirements for the VA home loan program and the benefits you receive from it.
Who Can Apply?
To apply for the VA home loan program, you must be a service member, veteran, or an eligible surviving spouse.
- Service Members: This includes active-duty members of the U.S. military, including the Army, Navy, Air Force, Marine Corps, and Coast Guard.
- Veterans: Individuals who have served in the military and have been honorably discharged.
- Eligible Surviving Spouses: Spouses of veterans who died while on active duty or as a result of a service-related injury, or who were missing in action or a prisoner of war.
What Are the Service Requirements?
Service members must have completed at least 90 consecutive days of active service during wartime or 181 days during peacetime to qualify for the VA home loan program. The National Guard and Reserve members typically need six years of service, unless activated for federal service.
Other Criteria for Eligibility:
- Length of Service: The required length of service depends on when you served. Such as, if you served during wartime, fewer days may be required.
- Discharge Status: To qualify, you must have been discharged under conditions other than dishonorable. An honorable discharge or a general discharge under honorable conditions is required.
Learn More: Can You Get VA Benefits if You Were Dishonorably Discharged?
Certificate of Eligibility (COE)
The Certificate of Eligibility (COE) is an official document issued by the VA that verifies your eligibility for a VA home loan. It confirms your service history and access to the benefits from the VA home loan program. You can apply for a COE online through the VA’s eBenefits portal or by mail. This document is essential for proving your eligibility, as lenders require it to proceed with the loan application and approval process.
Benefits of VA Home Loans
- No Down Payment Required: Unlike normal mortgages, which typically require a down payment ranging from 3% to 20% of the home’s purchase price, VA loans allow you to finance 100% of the home’s value. This is beneficial for veterans and active military who might not have enough savings for a down payment.
- Competitive Interest Rates: VA loans offer some of the lowest interest rates available in the mortgage market. The VA guarantees a portion of the loan, which reduces the risk for lenders. As a result, lenders can offer lower interest rates compared to traditional loans.
- No Private Mortgage Insurance (PMI): Private Mortgage Insurance (PMI) is typically required for conventional loans when the borrower makes a down payment of less than 20%. PMI protects the lender but adds to the borrower’s monthly costs. VA loans do not require PMI, due to the VA’s guarantee.
- Flexible Credit Requirements: VA loans can accommodate borrowers who don’t have the best credit score, unlike traditional loans. This allows veterans and service members who might have had financial challenges in their credit history but still can make mortgage payments.
Read More: Do You Have to Pay a Lawyer to Get VA Benefits?
Get Help Receiving the VA Benefits You Deserve
Are you a veteran seeking benefits? Don’t settle for less than you’re entitled to. Contact Tabak Law today for a free case review to discuss your VA benefits claim. Our experienced attorneys have a proven track record of securing favorable outcomes for our clients, and we’re ready to put our expertise to work for you.
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