THE BENEFITS OF GETTING A VA HOME LOAN

  VA Home Loans are better than ever - limit raised to $359,650

By John P. Allen

There are outstanding benefits in using your eligibility to obtain a VA home loan. 

Veteran home loans save you a great deal of money by giving you the best reates with no monthly mortgage insurance - which is a huge plus.

Plus, it is easier to qualify for a VA home loans. The VA even offers extra benefits for disabled veterans.  So if you have been disabled in service, a military loan can save you even more money.   The program is truly designed to give America's best an outstanding opportunity to get in the home buyer market.

More, there is zero down payment required when purchasing a home - which for veterans getting into the job market - is truly a major plus.

Furthermore, if you have bad credit but have been improving your credit history for the past year, you can get the same low interest rates for veteran home loans that are available to those with great credit.

Even with a Loan-to-Value of 100% - which means that the loan is eqaul to the sales price and/or appraised value, there is no monthly Mortgage Insurance required for a VA home loan. 

The loan is quaranteed by the U.S. Government so there is NO insurance required.....which can potentially save you hundreds per month on your monthly payments.  The VA mortgage loan is guaranteed with no money down for any loan up to $359,650.  And VA mortgage loans are often assumable which increases the appeal to future buyers when you're ready to sell......

To make things even more appealing, the VA has released a hybrid Adjust Rate Mortgage, commonly known as an "ARM". Veterans now have a choice of a Fixed rate or an Adjustable rate VA mortgage so you can decide which makes best for you. 

Generally speaking, if you plan to live in the home for more than 5 years, you ought to get a fixed rate.....however, if your purchase is for a "short term" - meaning you plan on owning the home for less than 5 years, an adjustable mortgage may make cents.  You would need to do a simple cost benefit analysis and compare the two choices to see what makes financial cents. 

ARE THERE ANY FEES FOR A VA MORTGAGE LOAN?

There is a Funding Fee required by the Department of Veteran Affairs, that varies between 0-3.3% of the amount of the military loan depending on your current Veteran Status. The funding fee is added into the total loan amount, so the borrower is not required to pay this out of pocket.

Benefits for disabled veterans dictate that if you are 10% or more disabled due to active military service, you will not be required to pay a funding fee. Those which are required to have a funding fee may lower their fee by putting money down on their VA home purchase.

ARE YOU ELIGIBLE TO GET A VA HOME LOAN?

Military Service Requirements for VA Loan Eligibility:

*NOTE: Applications involving other than honorable discharges will usually require further development by VA. This is necessary to determine if the service was under other than dishonorable conditions.

Wartime - Service during: 

• WWII  09/16/40 to 07/25/47
• Korean 06/27/50 to 01/31/55
• Vietnam 08/05/64 to 05/07/75

You must have at least 90 days on active duty and been discharged under other than dishonorable conditions. If you served less than 90 days, you may be eligible if discharged for a service connected disability.

Peacetime - Service during periods:   

• 07/26/47 to 06/26/50
• 02/01/55 to 08/04/64
• 05/08/75 to 09/07/80 (enlisted)
• to 10/16/81 (officer)
   
  You must have served at least 181 days of continuous active duty and been discharged under other than dishonorable conditions. If you served less than 181 days, you may be eligible if discharged for a service connected disability.
  Service after 09/07/80 (enlisted) or 10/16/81 (officer)

If you were separated from service which began after these dates, you must have:

(a) Completed 24 months of continuous active duty or the full period (at least 181 days) for which you were ordered or called to active duty and been discharged under conditions other than dishonorable, or

(b) Completed at least 181 days of active duty and been discharged under the specific authority of 10 USC 1173 (Hardship), or 10 USC 1171 (Early out), or have been determined to have a compensable service-connected disability;

(c) Been discharged with less than 181 days of service for a service-connected disability. Individuals may also be eligible if they were released from active duty due to an involuntary reduction in force, certain medical conditions, or, in some instances for the convenience of the Government.

Gulf War - Service during period 08/02/90 to date yet to be determined

If you served on active duty during the Gulf War, you must have:

(a) completed 24 months of continuous active duty or the full period (at least 90 days) for which you were called or ordered to active duty, and been discharged under conditions other than dishonorable; or

(b) completed at least 90 days of active duty and been discharged under the specific authority of 10 USC 1173 (Hardship), or 10 USC 1173 (Early out), or have been determined to have a compensable service-connected disability, or

(c) been discharged with less than 90 days of service for a service-connected disability. Individuals may also be eligible if they were released from active duty due to an involuntary reduction in force, certain medical conditions, or, in some instances, for the convenience of the Government.

Active Duty Service Personnel

If you are now on regular active duty (not active duty for training), you are eligible after having served 181 days (90 days during the Gulf War) unless discharged or separated from a previous qualifying period of active duty service.

Selected Reserves or National Guard

If you are not otherwise eligible and you have completed a total of 6 years in the Selected Reserves or National Guard (member of an active unit, attended required weekend drills and 2-week active duty for training) and

(a) were discharged with an honorable discharge; or

(b) were placed on the retired list; or

(c) were transferred to the Standby Reserve or an element of the Ready Reserve other than the Selected Reserve after service characterized as honorable service; or

(d) continue to serve in the Selected Reserves.

Individuals who completed less than 6 years may be eligible if discharged for a service- connected disability.

You may also be determined eligible if you:

(a) are an unremarried spouse of a veteran who died while in service or from a service connected disability, or

(b) are a spouse of a serviceperson missing in action or a prisoner or war.

[NOTE: Also, a surviving spouse who remarries on or after attaining age 57, and on or after December 16, 2003, may be eligible for the home loan benefit. However, a surviving spouse who remarried before December 16, 2003, and on or after attaining age 57, must apply no later than December 15, 2004, to establish home loan eligibility. VA must deny applications from surviving spouses who remarried before December 16, 2003 that are received after December 15, 2004.]

Eligibility may also be established for:

(a) certain United States citizens who served in the armed forces of a government allied with the United States in WWII.

(b) individuals with service as members in certain organizations, such as Public Health Service officers, cadets at the United States Military, Air Force, or Coast Guard Academy, midshipmen at the United States Naval Academy, officers of National Oceanic & Atmospheric Administration, merchant seaman with WW II service, and others.

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John P. Allen is General Manager of Veterans Today and is a VA Loan Specialist. 

If you have more questions, comments, or would like to get a VA Home Loan, please contact John Allen at 1(951) 543.4137 or email him at gm@veteranstoday.com

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