The following Q&A about who is eligible for a VA loan and reuse of eligibility for another VA loan has been so graciously provided by Vicci Bonner with Granite Mortgage Inc., for more information on VA loans you will find Vicci’s contact info at the end of this blog.
Q: Does my entitlement guarantee that I will get a home loan?
A: No, VA cannot compel a lender to make a loan that would violate their lender policies. Lenders must also comply with VA income and credit standards. If a lender is unwilling to make a loan to you, we can only suggest that you try other lenders.
Q: How much is my entitlement?
A: Your basic entitlement is $36,000. For loans in excess of $144,000 to purchase or construct a home, additional entitlement up to an amount equal to 25 percent of the Freddie Mac conforming loan limit for a single family home may be available. This loan limit can change yearly. The conforming loan limit for 2008 is $417,000 ($625,500 for Hawaii, Alaska, Guam and U.S. Virgin Islands). This means that qualified veterans could get a no down payment purchase loan for those amounts.
Q: How do I apply for a VA guaranteed loan?
A: You can apply for a VA loan with any mortgage lender that participates in the VA home loan program. You will need to obtain a Certificate of Eligibility from VA to prove to the lender that you are in fact eligible.
Q: How do I get a Certificate of Eligibility?
A: Complete VA Form 26-1880, request for a Certificate of Eligibility. Although it may be possible to establish eligibility without your proof of military service, to help eliminate possible delays go ahead and include it.
Q: Can my lender get my Certificate of Eligibility for me?
A: Yes, its called ACE (automated certificate of eligibility). most lenders have access to the ACE system. Not all cases can be processed through ACE – only those for which the VA has sufficient data in its records.
Q: What is an acceptable proof of military service?
A: If you are still serving on regular active duty, you must include an original statement of service signed by, or by direction of, the adjutant, personnel officer, or commander of your unit or higher headquarters which identifies you and your social security number and provides your data of entry on your current active duty period and the duration of any time loss.
If you were discharged from regular active duty after 1/1/1950, a copy of DD Form 214, Certificate of Release or Discharge from Active Duty should be included with your VA Form 26-1880. If discharged after 10/1/1979, DD Form 214 copy 4 should be included. A photocopy will suffice – you do not submit the originals.
Q: I sold the property I obtained with my prior VA loan on assumption. Can I get my eligibility restored to use for a new loan?
A: In this case the veteran’s eligibility can be restored only if the qualified assumer is also an eligible veteran who is willing to substitute his or her available eligibility for that of the original veteran. Otherwise the original veteran cannot get his eligibility restored until the assumer has paid off the VA loan.
For more information on the VA guaranteed home loan program visit the US Department of Veterans Affairs website, or contact Vicci Bonner:
Vicci Bonner, Loan Officer
910.484.7272 Office
866.417.7272 Toll Free
910.263.1639 (mobile)
910.484.7278 (fax)
1 Comment
August 15, 2008 at 3:56 am
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