Do You Have to Make a Down Payment for a VA Loan

The VA home loan program was initially set up for the benefit of World War II veterans returning to civilian life after the war.

Anyone who had served in the military for 90 days between Sept. 16, 1940 and Sept. 2, 1945 was eligible.

Veterans could apply anytime within two years of separating from the military or within 2 years of the war’s end.

When the Korean War started in June of that year, Congress extended the VA loan benefits to include Korean War veterans.

In the fall of 1970, President Nixon signed the Veterans Housing Act of 1970 into law.

This new era for the VA mortgage program eliminated any kind of expiration date on VA loan benefits.

The result was that nearly 9 million veterans whose loan entitlement had expired were suddenly eligible again.

Today, nearly 70 years after its creation, the VA Loan Guaranty program continues to help veterans and their families on the path to homeownership.

ADVANTAGES OF A VA LOAN

The biggest advantage of a home loan guaranteed by the VA is the fact that no down payment is required to purchase a home.

With conventional lenders requiring 10 to 20% down to qualify for a home loan, the “no down payment required� for veterans is a huge bonus.

A VA loan also doesn't require mortgage insurance, like FHA and conventional loans do, with less than a 20% down payment.

This advantage can equate into a significant monthly savings for VA borrowers.

ELIGIBILITY REQUIREMENTS FOR A VA LOAN

Today, most members of the military, veterans, reservists and National Guard members are eligible to apply for a VA loan.

In addition, spouses of military members who died while on active duty or resulting from a service-connected disability are also eligible.

For active-duty military personnel, they generally qualify after about 6 months of service.

Reservists and members of the National Guard must wait 6 years to apply for a VA loan.

However, if they are called to active duty before that, their eligibility begins after only 181 days of service.

STEPS TO ACQUIRING A VA GUARANTEED LOAN

1 Select a VA-approved Lender

2 Obtain a Certificate of Eligibility (COE)

Your lender can help you obtain a Certificate of Eligibility (COE).

The COE will prove that you meet initial eligibility standards for VA loan benefits.

It will also let the lender know how much entitlement you can receive.

3

Pre-Qualify for Your Loan Amount

Although not required in the loan process, pre-qualifying is important.

To pre-qualify, you’ll need to reveal your income, credit history, employment, marital status and other factors that can affect the loan amount for which you are eligible.

LOAN AMOUNTS

For 2017, the maximum VA loan amount is $424,100 with the following exception if you are buying a home in certain areas of the country‌

‌like Hawaii or California where home prices are above the national average, higher loan limits are available.

Mortgage Originator Jimmy Vercellino, specializing in VA loans, helps veterans use their VA loan benefit to their greatest advantage.

Be a proud homeowner today.

For more details call 480-351-5904 or visit the site www.valoansforvets.com

VA Loans for Vets 7600 E. Doubletree Ranch Road #200 Scottsdale, AZ 85258 Phone: (480) 351-5904 Email: jimmyv@fcbmtg.com