Who Qualifies for a VA Loan?
Are you about to enter the process to qualify got a VA loan? If so an experienced home loan company like Diditan Financial can help you navigate all the red tape and get your loan approved with as little stress as possible. A VA Loan is a government backed home loan solution for active service members, or those who were discharged from the military under any circumstance other than dishonorable. Before you can qualify for a VA loan servicemen or veterans must first obtain a Certificate of Eligibility (COE), have appropriate credit, and a suitable income. VA loans are used for:
- Building a home
- Buying a home, condo, or apartment in a VA-approved project
- Improving a home by installing energy efficient improvements like solar panels or energy efficient heating and cooling units
- To simultaneously buy a home and make upgrades and improvements
- Buy a lot
In order to qualify for the COE you must have served so many days of active duty. These days vary depending on what war was happening at the time, or if the era was considered a time of peace. For example, if you are a veteran of the Vietnam War you would have had to have served 90 total days to qualify. If you were active military after the Vietnam War between 5/8/1975 to 9/7/1980, you would have had to have served 181 continuous days. If you were active service during the Gulf War you would have had to have served 24 continuous months or the full period (at least 90 days). It is ideal for you to learn as much as you can regarding your rights to this special home loan program by researching those popular questions about VA loans that others are asking, and Diditan Financial is ready for your call when you want to see how much home you can get on your loan.
Can I Qualify for a COE if I do Not Meet the Required Service Days?
If you fall short of the required service days you may still be able to qualify for a COE. For instance, if you had to leave the armed forces due to a hardship, you were discharged for the government’s convenience, discharged for a medical condition, there was a reduction-in-force, or you received a service-related disability, you could still get the COE required for VA loan approval.
Others who didn’t serve in the United States armed forces may also qualify for the COE if the individual is a US citizen who served in the military under a government that allied with the United States during World War II. In other words, if you were an American student studying in France during the Nazi occupation and teamed up with the French army to fight the Germans, you would qualify for a COE. Other individuals may also qualify if they:
- Served as Public Health Officers
- Were cadets in the United States Air Force, Military, or Coast Guard Academy
- Were midshipmen at the United States Naval Academy
- Were a merchant seaman with service during WWII
- Served as officers in the National Oceanic & Atmospheric Administration (NOAA)
There are many other qualifying circumstances in which individuals may receive the COE. Diditan Financial can can help you qualify and set you on the path to home ownership through the convenience of the VA loan you so rightfully are entitled to.
Can Spouses of Veterans get a VA Loan?
There are certain conditions in which the spouse of a deceased veteran can qualify for a VA loan. These apply for:
- Spouse of a Serviceman who is a prisoner of war or missing in action
- Spouse of a veteran who died while in service or from a service-related injury. Note: the spouse must have never re-married
- Surviving spouses who re-marry at or after age 57
- Surviving spouses who re-marry on or after December 16, 2003
If your spouse died under the circumstance in which he/she was completely disabled, and the injuries leading up to the death may or may not have been the cause, you still might qualify for a VA loan. Your spouse wasn’t the only one to make a sacrifice to serve; you also made a sacrifice by taking on all the family responsibilities at home on your own. The government wants to reward you for your service too. Diditan Financial understands the sensitive nature surrounding these types of loans, and our caring experts are here to help you find the right home loan solution.
What are Loan Limits for a VA Loan?
When it comes to loan limits through the VA home loan, there is no cap set on borrowing limits. On the flip side, the amount of liability that the VA can assume has limitations which can have an impact on the amount of money you can borrow to finance your home or make upgrades. this in turn generally affects the level of funding an institution will lend to you. With the VA loan, loan limits are defined as the sum a qualified Veteran may borrow without having to make a downpayment. Because the value of a home is set by county, so too are the loan limits. Standard entitlement granted to eligible Veterans is typically $36,000, though lenders have been known to grant up to four times the Veteran’s entitlement with no down payment, so long as the home appraises for the asking price and the borrower’s credit and income qualifies him. You can visit the Federal Housing Finance Agency’s website to view conforming loan limits per county, and to learn more about how the FHFA works with national conforming loan limits.
If Veterans had a VA loan in the past, there is a chance he/she may still have “remaining entitlement” to apply towards another loan. Generally, lenders will ask that a combination of a cash downpayment and the guaranty entitlement equal at least 25 percent of the sale price or appraised value of the home, whichever of these two is less. Let’s look at an example: David, a retired Naval Officer, has $21,200 remaining in entitlement. He will most likely meet a lender’s minimum guaranty demands for a no-down payment loan to finance a home valued at and selling for $92,000. David could also combine his remaining entitlement with a down payment to garner a larger loan amount for a nicer home with that workshop he wanted, and a pool for his kids. Diditan Financial is standing by ready to assist buyers applying for a VA loan to get their dream home with all the amenities and features they need to make life more enjoyable. We also work to help you get your home in your desired neighborhood, all while staying within your financial window. Give us a call, and let us serve you.
Purchase & Cash-Out Refinance Home Loans
If you have the cash to buy a home out right, you may want to consider a Purchase Loan through the VA. Opposed to a traditional home loan utilized by civilians, Diditan Financial can help you purchase a home at a competitive rate that traditional buyers would sell their first-born for. This is also a good option for Veterans with credit challenges, but who have cash and were unable to utilize other forms of financing.
A Cash-Out Refinance Loan is for Veterans who already own property and wish to pull equity from it to resolve pressing matters such as paying tuition to go back to college, making home improvements, or paying lawyer fees for your uncle Vito who got in a bar fight with an off-duty police officer. The Cash-Out Refinance Loan can also be applied to a non-VA loan to transform them into one. Such a loan is guaranteed by up to 100 percent of your home’s value by authorization of the VA.
VA Home Loan Guaranty
A “guaranty” is a promise to pay a debt while protecting it from being dissimilated or torn down. In most cases, VA home loans are managed by private lenders and the VA really tends to stay out of the loan approval process. However, the VA back you up by supporting the loan by guaranteeing a chunk of it. In the event something dire happens impacting your financial standing thus rendering you unable to make payments on the loan, the lender can go to the VA to recover any financial losses on their part. So in essence the VA loan guaranty acts as “insurance” that we offer to the lender thus removing a huge portion of risk that may otherwise get you denied.
VA Home Loan Advantages
There is a plethora of advantages to utilizing the VA guarantee provided to lenders that motivates them to give Veterans more favorable terms that include, but are not limited to:
- Zero requirements for a private mortgage insurance premium
- No down payment, so long as the home doesn’t sell for a greater price than its appraisal value
- The seller can pay the closing costs
- If you pay the closing costs, the VA has rules limiting the amount the seller can charge you
- No penalty fees for paying off the loan early
- If you experience hardship and struggle to pay your mortgage, the VA can likely help
- The benefits are reusable
- You don’t have to be a first-time buyer
- VA loans are a given, as long as the borrower qualifies
If you are a Veteran who qualifies for a VA loan, you will be hard-pressed to find a better option. Contact our Diditan Financial team to help you secure the best deals through the amazing programs available to you. Not only do most of our team members have military service experience, we also know VA loans and the landscape of financing like the Extractor and Bolt Carrier Assembly of an M-16!
Housing Grants for Disabled Veterans
If Veterans are confined to a wheelchair, or their height and/or reach has been altered due to a traumatic injury, the VA offers housing grants for disabled Veterans to help them modify their existing home, or purchase an adapted home to accommodate their disability. There are two grants that a Veteran may qualify for: the Special Housing Adaption (SHA) grant and the Specially Adapted Housing (SAH) grant. If you have any service-related disabilities you may qualify for a SAH grant that can remove those awkward barriers that are making life more challenging than it need be. In most cases a home can be outfitted so Veterans can live independently without the need to have line-in support or family constantly stop in. SAH grants can be used in one of the following ways:
- To build a home on land you already own, so long as it is suitable for an adapted dwelling
- Building a special adapted home on land that is to be purchased
- Use grant funds against the unpaid principal mortgage balance
- Remodel your current home into an adapted one to accommodate your needs
Special Housing Adaption Grant
The SHA grant assist Veterans with service-connected disabilities purchase or adapt a home to accommodate the disability, rather than trying to use the disability to adapt to the standard dwelling environment. The Veteran must be a resident in the home funded by the grant. SHA grants can be used to:
- Provide help for a Veteran wanting to purchase a home already adapted that he/she will live in
- Adapt an existing home already owned by the Veteran (or his/her family) in which he/she will reside
- Adapt a home the Veteran or family plans on purchasing in which the former serviceman will live
- Loss of use or loss of both arms
- Loss of use or loss of both legs
- The loss of use or loss of one lower leg combined with organ disease or trauma
- Blindness in both eyes with only minimal perception, plus loss of use or loss of one leg
- The loss of use or loss of one leg and loss of or loss of use of one arm
- Particular burns
- Loss of use or loss of one or more lower extremities related to service on or after September 11, 2001 that impacts balance function or propulsion as to prevent mobility without the assistance of canes, crutches, braces or a wheelchair.
Eligibility for the SHA grant requires:
- Certain major respiratory injuries
- Blindness in both eyes with 20/200 acuity or less
- Loss of use or loss of both hands
- Particular major burn injuries
You put your life on the line to help make this world a safer place, and to help keep America strong. If you suffered a major injury, you are entitled to a grant that can give you back control of your life. Diditan Financial can help you find the home of your dreams that you can have adapted to accommodate your injury. Give us a call, and let us serve you with honor.
Diditan Financial Knows VA Loans
Whether you were deployed to Iraq, did a pair of tours in the Vietnam War, served several years in the Coast Guard, or flew F-16s in the Gulf War, Diditan Financial can help you find the best VA loan to help make life a little easier as a way to say thank you for your service.