Q. I was researching VA loans and got confused. Do you have to be currently active duty to recieve a VA home loan, or can you be out but still in the reserves?My husband has been Active duty during wartime for 3 years been deployed to a warzone for a year, but we want to be able to buy a home when we're out of the military.
A. Actually, you can either be Active Duty or a Veteran.
The VA Loan Guaranty program is not a loan program. The basis of it is this:
1st - File for the Certificate of Eligibility. (Note: If filing while active duty but not used until after released, he will need to file again. An active duty eligibility does not carry over to veteran status.)
2nd - Seek out a realtor or home you wish to buy.
3rd - Let the realtor and/or bank know that you wish to pursue a VA Loan Guaranty.
4th - Depending on who the bank/lender is will depend on where to go after that...but it's pretty much invisible to you...meaning the bank/lender will do everything.
5th - The VA will notify the bank/lender what you're qualified for and the bank/lender will let you know if there's any money due at closing and the closing date. (If accepted for the loan.)
The VA will "Guarantee" the loan to the lender. Meaning, if you find a home for $100,000 and the VA 'guarantees' $50,000 then if you default on the loan, the lender is guaranteed to $50,000 from the loan. Of course, you still owe the remainder of the loan to the lender and you now owe $50,000 to the VA...but, that's ONLY if you default on the loan.
Depending on your credit scores, it can be cheaper to not use the VA. Some lenders will charge more interest rate because there's not as much being put down as a down payment. Make sure you look at both sides of the issue, not just the VA.
The VA Loan Guaranty program is not a loan program. The basis of it is this:
1st - File for the Certificate of Eligibility. (Note: If filing while active duty but not used until after released, he will need to file again. An active duty eligibility does not carry over to veteran status.)
2nd - Seek out a realtor or home you wish to buy.
3rd - Let the realtor and/or bank know that you wish to pursue a VA Loan Guaranty.
4th - Depending on who the bank/lender is will depend on where to go after that...but it's pretty much invisible to you...meaning the bank/lender will do everything.
5th - The VA will notify the bank/lender what you're qualified for and the bank/lender will let you know if there's any money due at closing and the closing date. (If accepted for the loan.)
The VA will "Guarantee" the loan to the lender. Meaning, if you find a home for $100,000 and the VA 'guarantees' $50,000 then if you default on the loan, the lender is guaranteed to $50,000 from the loan. Of course, you still owe the remainder of the loan to the lender and you now owe $50,000 to the VA...but, that's ONLY if you default on the loan.
Depending on your credit scores, it can be cheaper to not use the VA. Some lenders will charge more interest rate because there's not as much being put down as a down payment. Make sure you look at both sides of the issue, not just the VA.
I am active duty and trying to start the process to get a VA Loan. Where do I begin?
Q. Is there a way to get a Certificate of Eligibility for the range your looking to buy in. I know all Soldiers basic entitlement is $36,000, I was looking to see if there is a way to get a higher certificate of elgibility to acquire so we can get an idea of what is realistic. Our income is roughly $75,000 annually.
A. Simply contact the Best VA Loan Specialist's in the country and they will be able to help you regardless of where you are looking. They will be able to answer all of your questions and concerns and likely save you lots of time and money.
Not all lenders will be able to provide the same options and service. The VA Loan is absolutely the best option available to those that are eligible and it's disappointing when those who serve lose out.
http://www.vamortgageleader.com/top-va-loan-originator-2010/
Not all lenders will be able to provide the same options and service. The VA Loan is absolutely the best option available to those that are eligible and it's disappointing when those who serve lose out.
http://www.vamortgageleader.com/top-va-loan-originator-2010/
Can a VA home loan be used for the construction of a new home?
Q. We are trying to purchase land to build a home on. Can we use our certificate of eligibility to get a loan for the construction of the home? We are already aware that we cannot use it for the land itself, but I keep seeing differing things about the construction of homes. Can someone clarify this with sources that are recent please?
A. No.
You first would have to get approved by a VA lender for a mortgage.
Then the bank would issue a construction loan, and you would have to use one of the bank's approved builders. After the house was built the construction loan turns into the VA mortgage loan.
You first would have to get approved by a VA lender for a mortgage.
Then the bank would issue a construction loan, and you would have to use one of the bank's approved builders. After the house was built the construction loan turns into the VA mortgage loan.
Can a VA home loan be used for the construction of a new home?
Q. We are trying to purchase land to build a home on. Can we use our certificate of eligibility to get a loan for the construction of the home? We are already aware that we cannot use it for the land itself, but I keep seeing differing things about the construction of homes. Can someone clarify this with sources that are recent please?
A. Yes, you can absolutely use your VA mortgage guaranty against a home construction loan. We built our house using my VA mortgage guaranty with said loan.
How do I find out how large of a VA home loan I will qualify for. What is this amount based off of?
Q. Is credit at all a consideration? How long does it take to get a certificate of eligibility?
A. you go to a lap approved VA lender give them your income, tell them your monthly debts and they can calculate it. (I think the VA lenders who can do their own paperwork is called lap approved, that could possibly be the FHA or some other gov loan, but get one oked by the VA, which makes the loan process so much nicer). I think it's a payment of about 26% of your gross income (before taxes) for the house payment and 41% of total income for all payments including the house payment, or right around those numbers. You should be able to get 0 down. Any short term debt that will be paid off in around 6 months or less they won't count towards the total debt. There is an interest rate that the VA gives thats been a tad better than conventional lately, hovering around 6% last I looked.
You can use this site to calculate payments on certain amounts at certain % rates.
http://www.mortgage-calc.com/mortgage/simple_results.php
You can use this site to calculate payments on certain amounts at certain % rates.
http://www.mortgage-calc.com/mortgage/simple_results.php
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