My First Car Loan

The VA Home Loan Program, run by the federal Department of Veteran Affairs (or VA), is a program that makes it easier for active military service members and veterans to secure home loans. The VA guarantees some of the loan itself, so banks and other lenders are eager to extend reasonable loans to members of the military. If this is your first time seeking a VA loan, here are some things you should know.

Your Eligibility Status

While you may eventually be able to qualify for a VA home loan, you might not at this moment. In many cases you need at least 90 days of continuous service, although the requirement may be more depending on when you served. There are additional requirements for National Guard members. In addition to your service, you must not have been dishonorably discharged. Certain spouses are also eligible for a VA loan as well. Check directly with the VA to ensure you are eligible for a loan.

Once you know whether you are eligible, you must obtain a certificate of eligibility (COE) from the Department of Veteran Affairs so you can show your eligibility status to banks and other lenders. However, you do not need to wait for this certificate to start the loan process.

There are Occupancy Requirements

There are some rules regarding occupancy when you get a VA home loan. This might affect you if you are currently an active service member and want to buy a house, as you might not be able to move in right away. In some cases, your spouse may be able to move in before you do, to show that you and your family plan to use the house as your primary home. If you are unmarried, you might be able to get an extension so you can fulfill the occupancy requirements, but be sure to investigate those options before you actually purchase a house.

There Is No Guarantee

Even though a VA home loan can be extremely helpful when looking for a house to buy, do not assume that it is the only thing you need to own a home. Your credit score and debt-to-income ratio are still factors when lenders consider your application, so make every attempt to clean up your credit and ensure you are financially able to carry a mortgage for a number of years.

Now that you know some things about VA loans, you can start your home search. Be sure to work with a VA home loan specialist, like Mann Mortgage, who can help you navigate the process successfully.