Learning the Steps to Applying for a VA Loan There are many returning veterans who are curious about how to apply for the benefits that are available to them due to their service in the military. Thanks to their honorable time served in the nation’s armed services, these veterans are able to apply for and receive a host of benefits. One of the most popular and helpful benefits that returning veterans are applying for and receiving is the VA home loan program offered by approved lenders. A VA home loan, or often simply called a VA loan, is a mortgage loan that is insured by the federal government’s Department of Veteran Affairs. Due to its being funded and insured by the federal government, VA home loans are more easily affordable to the average citizen, among other reasons, because with the backing of the government private lenders can offer the VA home loan with a lower down payment than they cannot offer on traditional home loans.
Qualifying for a VA Home Loan Traditional home loans require a down payment of twenty percent while a VA home loan can offer much lower down payments of around three percent. This difference in down payment means that a qualified veteran can receive a VA home loan for pennies on the dollar of a regular home loan down payment. With other advantages included in a VA home loan over a traditional home loan, such as lowered interest rates, it is no surprise that all veterans are looking to take advantage of the VA home loan program. The challenge then becomes undertaking the steps to receive a VA home loan. The first and biggest hurdle in receiving a VA home loan for many veterans is to prove that they are qualified to receive assistance from the VA home loan program under the stipulations and qualifications that have been set. The VA home loan is available to those veterans or active duty members of the armed services, including the National Guard and Reserves, who meet specific standers of service time and/or time spent in combat zones.
Eligibility for VA Loans To determine eligibility, these present or past service members must submit a VA Form 26-1880 along with proof of service (DD Form 214, a statement of active duty, or proof of participation in the National Guard or Reserves) to the VA Eligibility Center, P.O. Box 100034, Attn. COE (262), Decatur, GA 30331. After reviewing the application and the forms, the Department of Veteran Affairs will determine if the candidate is qualified to receive a VA home loan benefit.
Those who are found to be qualified to receive a VA home loan will then be able to proceed with the other steps in securing the loan. These steps include inspecting the home to receive state inspection certification, appraising the home and property value, requesting the VA home loan from an approved lender, and finally closing on the home. Receiving a VA home loan is a relatively easy process for veterans who qualify under the stated qualifications of the VA home loan program. Once accepted as a qualified applicant, the other steps to receiving and taking advantage of a VA home loan to purchase one’s own home can be more easily and readily accomplished. Photo Credit: Lakepeople, chachu207