V.A. Home Loan Option

V.A. Home Loans are a great option that are often overlooked and offer great benefits, including 0% down payments and NO monthly mortgage insurance.

What is a V.A. Loan?

A U.S. Department of Veterans Affairs (VA)  Loan is a guaranteed loan backed by the Government provided to Veterans for the purchase of a principal residence.  Generally, it requires no minimum down payment, no monthly mortgage insurance, and a minimum credit score of 620.  There is usually a small Loan Origination Fee (around 1%), an Up Front Mortgage Insurance Fee, which can be rolled into the loan amount, in addition to closing costs. However, the seller may assist the buyer with many of these fees. A V.A. licensed appraisal will be ordered through V.A.

Who is eligible for a V.A. loan?
In general, if a Vet served 2 years of continuous service, 90 days active duty during war time, and 180 days during peacetime they will qualify.

Which branches qualify?
Army, Navy, Air Force, Marines, Coast Guard and Vets of the Selected Reserves and National Guard may be eligible, with a minimum 6 years enlistment.

Spouses of Veterans may also be eligible if the spouse has not remarried and the Vet died while in service or from a service connected disability or is the spouse of a serviceperson missing in action or prisoner of war.  Additionally, if the surviving spouse remarries on or after the age of 57 and or after Dec 16, 2003 they would be eligible.

A V.A. Loan can also be granted to those serving active duty and Selected Reserve or National Guard with a signed statement of service by the personnel office or commander of the unit.

Please keep in mind that V.A. makes the final decision in determining eligibility.

Can a V.A. Loan be used to purchase investment property?
No, a V.A. loan can only be used on a primary residence, such as a Single Family Home, Condo, or Townhouse. Multiple Family dwellings, such as apartment complexes, will not qualify.

How do I find out how much home I can afford?
The first step is to locate your Discharge papers-VA form DD-214, and bring an original copy into the lender of your choice to determine your eligibility. There are very specific income requirements to determine loan amounts based on credit and family size.  Then you can begin your home search with a qualified Real Estate Agent or Broker.

For more information, contact:

Jennifer Vargas
Century 21 1st Class Homes
Schaumburg, IL
Email: homes@jenvargas.com

Information provided by Dennis Baier, Woodfield Planning Corp.