Seattle VA Loans
VA Loan 101—Knowing More About The Important Basics Of VA Loans
If you are wondering what a VA loan is and how it can help you with your plan to purchase a home, this article will provide you an in-depth perspective on what a VA loan is and what are its advantages. You will also learn more about the basic qualifications for the loan and what types of loans are available for you.
VA Loan—An Overview
The VA Loan program is a mortgage option provided to US military members and veterans, allowing them an opportunity to purchase a home without having to put any money down towards the home sale price.
VA Loans were made available to the public when the GI Bill was signed into law in 1944 by President Franklin Roosevelt. The primary purpose of the bill was to give veterans an opportunity to own homes and fulfill their American Dream. The VA loan—a form of mortgage loan—is guaranteed by the federal government, so both lenders and borrowers are protected.
VA Loan Eligibility
Through their dedicated service to the country, US military members and veterans are qualified to take advantage of VA loans. However, while the VA loan was designed for those who served in the military, there are specific service conditions that must be met and a handful of requirements to comply to in order to qualify.
The following are eligible for a VA Loan:
Here are the conditions that must be met in order to be eligible for a VA home loan:
How to Obtain a Certificate of Eligibility
You must obtain a COE or Certificate of Eligibility prior to taking out a VA Loan. The COE is given by the Department of Veteran Affairs, and is a formal document explaining the VA entitlement you possess. You can seek assistance from a Veterans United Loan Specialist in securing a COE, and this is usually completed within minutes.
You can also get a COE by yourself simply by filling out the VA Form 261880 Request Form, which can be downloaded via the VA site HERE.
The Advantages of VA Loans
There are many benefits of a VA Loan, and some of them are:
How Much Loan Can A Veteran Take Out?
According to the Maximum Guaranty Limits for 2014 (Revised), the program does not set a maximum amount that any eligible Veteran may borrow. Lenders can allow a Veteran to take out a loan according to the calculated maximum loan limit; but, the lenders can require the borrowers to make a down payment in these types of transactions.
There are county limits that must be followed in calculating the VA’s maximum guaranty amount per county. In general, though, a Veteran can take out a loan amounting to $417,000 without a down payment, and take out up to $1,094,000 in high-cost places.