Why a VA loan?

The more you know about this home loan program, the more you will realize how little "red tape" there really is in getting a VA loan. These loans are often made without any downpayment at all, and frequently offer lower interest rates than ordinarily available with other kinds of loans.
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What is a VA guaranteed loan and what can it be used for?

These loans are made by a lender, such as a mortgage company, savings and loan or bank with the guaranty of the VA. The loan can be used for a variety of home-ownership needs, such as to buy a house, townhouse or condominium unit in a VA-approved project, to build a home or to simultaneously purchase and improve a home.
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Who is eligible for a VA home loan?

Veterans who served on active duty and were discharged under conditions other than dishonorable, during World War II and later periods are eligible for VA loan benefits. Members of the Selected Reserve, including National Guard, who are not otherwise eligible and who have completed 6 years of service and have been honorably discharged or have completed 6 years of service and are still serving may be eligible.
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Why is VA financing a good deal?

Veterans should consider the many advantages of VA home loans. The most important feature of the program is that veterans and active duty military personnel can finance their homes with no down payment. That means the loan maximum may be up to 100 percent of the VA-established reasonable value of the property.
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What are the necessary steps to obtaining a VA loan?

First, you'll need to apply for a Certificate of Eligibility. A veteran who doesn't have a certificate can obtain one easily by completing VA Form 26-1880, Request for a Certificate of Eligibility for VA Home Loan Benefits. Once completed, submit it to one of the VA Eligibility Centers with copies of your most recent discharge or separation papers.
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What if I've already had a VA loan?

Veterans who had a VA loan before may still have "remaining entitlement" to use for another VA loan. The current amount of entitlement available to each eligible veteran is $36,000. This was much lower in years past and has been increased over time by changes in the law. For example, a veteran who obtained a $25,000 loan in 1974 would have used $12,500 guaranty entitlement, the maximum then available.
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Are there any costs involved?

One of the common errors made by people buying homes is to think that the only cost will be monthly payments of principal and interest on the mortgage. It is important to keep in mind that there are other items which have to be paid which add up to a substantial outlay. Before you buy, be sure that your income is sufficient to cover all of the cost which you will have to pay.
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How do I apply for the loan?

The application process for VA financing is no different from any other type of loan. In fact, the VA application form is the same as that used for HUD/FHA and conventional loans. The mortgage lender verifies the applicant's income and assets, and obtains a credit report to see that other obligations are being paid on time. If all is well and the appraised value of the property is enough to cover the loan needed, the lender, in most instances, can then close the loan under VA's automatic procedure.
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