If you\’re a veteran and interested in becoming a homeowner, you should look up vet loan requirements to see if you can obtain a VA loan. It\’s one of the benefits of being in the military that many veterans find most useful, especially as they try to re-enter civilian life. However, the amount you can receive in a VA loan is determined on a state by state basis. The VA loan limit must meet the maximum mortgage amount limits that Federal Housing Finance Agency have set, so it\’s important to check into the VA loan program in your state to see what your options are. The VA home loans are provided by qualified lenders and the United States Department of Veterans Affairs backs them, which is one of the reasons why the rates are so good.
What Are Vet Loan Requirements?
Of course, one of the main vet loan requirements is your service to your country. You can be serving active duty or be a veteran to be eligible for the vet loan. You either must have served 181 days during peacetime, 90 days during war, or spent six years in the Reserves or National Guard. However, if you are the partner of a member of the service who was killed in the line of duty, you may also qualify for the VA loan. Additionally, if your spouse was declared missing in action or is a prisoner of war, you may meet the vet loan requirements.
Additionally, if you are a cadet or midshipmen, you may qualify for the VA loan program as well. If you are a veteran, you must have been honorably discharged from service — those with a general discharge or dishonorable discharge are not eligible.
What Can I Use the VA Loan For?
The VA home loan must be used on property — it cannot, for example, be used for purchasing a car or financing further education. You may also not use it as a business loan.
A VA home loan is meant to be used towards purchasing or fixing up a home — this includes a townhouse or condo, but must be in a VA-approved area. And, indeed, the VA home loan has helped over 20 million veterans say that they\’re a proud homeowner. You may also build a home, purchase a manufactured home (such as a mobile home), buy a multiunit property (though you need to live in one of the units), and to purchase a fixer-upper. If you are improving a home, you need to run these improvements by the lender and VA first.
You are also eligible to refinance a home loan you already have — up to 100% of the value — or to refinance in order to get a better interest rate. However, the VA home loan only applies to homes within the United States, its territories, or possessions, so you cannot use it to purchase or build a home abroad.
What Are Some of the Benefits of VA Home Loans?
In 2016, over 700,000 home loans were approved by the VA all across the country, helping veterans and service members to have a place to come home to. VA mortgage rates are generally as much as 50 basis points lower than what conventional mortgage loans offer. Furthermore, you don\’t need mortgage insurance with a VA loan and they provide 100% financing. In some cases, you may be able to purchase or refinance your mortgage with $0 down, depending on your eligibility.
And, if you\’ve always dreamed of being a homeowner and not renting anymore, the VA home loan gives you the opportunity to do just that. In 2015, over 100,000 home loans were given to veterans who were buying a home for the first time.
Give yourself a leg up and take advantage of the VA loan program. You can be the proud owner of a home or give your existing home the TLC it deserves with the assistance from the VA. Find out if you\’re eligible and how to start the application process today!