The Military Wallet» VA

VA Streamline Refinance

Ryan — Tue, 06 Jul 2010 10:16:20 +0000

For people who have a current VA mortgage loan and are looking at refinancing options on the balance of their loan, an Interest Rate Reduction Refinancing Loan (IRRRL) may be an option. IRRRL, or VA Streamline Refinance, is a rather easy process that results in the reduction of your interest rate, provided you are not refinancing from an adjustable rate mortgage to a fixed rate mortgage.

The Benefits of an Interest Rate Reduction Refinancing Loan

The IRRRL is probably one of the easiest refinancing processes you will find anywhere. There is no appraisal or credit underwriting procedures required by the VA, although individual lenders may require such reports. The VA also does not require certificates of eligibility. Lenders may use the VA’s Prior Loan Validation procedure to determine the lowered interest rate instead of the eligibility certificate. Borrowers can refinance through the IRRRL without paying any out of pocket expenses as all costs can be included in the new loan.

VA Loan Refinance Terms

An Interest Rate Reduction Refinancing Loan can only be used if an individual has already used their eligibility for a VA loan on the property up for refinancing. The refinance must be a VA to VA refinance and the action will reuse the entitlement you have initially used. A lender will need to see your prior use of entitlement so they’ll need a copy of the Certificate of Eligibility.

The amount of the refinancing loan can not exceed the outstanding balance on the original loan plus allowable costs and fees for closing. Up to two discount points are also allowable. Plus, you can add up to $6000 of improvements made for energy efficiency. At no time can an individual receive cash back from the refinancing process.

When an original VA loan was done, there was a requirement to certify the individual was to occupy the home. With an IRRRL, you only need to certify you previously lived in the residence.

Should you do a VA Streamline Refinance?

Refinancing any loan requires thought and consideration of your financial situation now and down the road. Borrowers are strongly encouraged by the Veterans Administration to seek out the terms from several lenders and compare VA Mortgage rates before committing to one. There can be major differences between lender’s loan terms. Some lenders will promote the IRRRL by telling borrowers they are the only lender authorized to offer such a refinance. The reality is any lender can do a IRRRL. However, you may find it easier to deal with a company that specializes in these types of loans, such as VAMortgageCenter.com.

In some cases, the add-in costs can result in the loan amount being higher than the fair market value of the home. In these circumstances, the benefit of refinancing may not be in your best interest.

Lenders who offer IRRRL opportunities use it as an option for homeowners to reduce the term of the loan from 30 to 15 years. While it can reduce the time it takes to pay off the loan, the refinancing process will add new costs and potentially can increase your monthly payment significantly. If the new loan’s interest rate is not 1-2% lower than the original rate, it may not be worth the refinancing process as the initial loan may be in your best interest.

There will be lenders that try to add additional closing costs to the loan but know that the VA only requires one fee, the funding fee, for one-half of one percent of the loan amount. The funding fee may be paid in cash from the borrowers or rolled into the loan.

The decision to refinance is a personal one and a solution that works for one person may not work for another. Shop around for lenders and compare loan terms before committing to a refinance.

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Benefit Financially through a VA Home Loan

Ryan — Wed, 30 Jun 2010 11:01:14 +0000

VA loans can save veterans and their families significant dollars over the life of a mortgage. They also honor the sacrifice made by those who served our country.

Created in 1944, the VA Loan Guaranty program provides guaranteed loans to qualified veterans, active-duty service members and some surviving spouses. These loans provide major financial benefits, including the ability to purchase a home with no money down. In today’s real estate market, that’s a highly prized commodity.

Financial Benefits of a VA Loan

That no down payment feature means that veterans can come to the table with less liquidity and cash on hand than most other buyers. VA borrowers in most parts of the country can purchase a home worth up to $417,000 without putting down a single dollar.

The purchasing power VA home loans is all but unmatched in the marketplace. But these flexible, low- and no-cost loans also provide other significant savings for veterans and their families, including:

No PMI. Private mortgage insurance is a monthly cost that conventional borrowers have to pay unless they put down at least 20 percent. There’s no PMI on a VA loan, which means veterans can funnel those dollars into home improvements or other purchases.

Sellers pay closing costs. Veterans can avoid paying most, if not all, of the closing costs associated with a loan. The VA allows sellers to pay up to 6 percent of closing costs and concessions. That means veterans don’t need a pile of cash on hand to cover those final costs associated with their loan.

Great Rates. VA loan rates are frequently lower than their conventional counterparts. Even a slight difference in rates can make a big difference over the life of a 30-year mortgage loan. For example, on $300,000, 30-year fixed-rate mortgage at 5.0 percent, the monthly payment is $1,610 without taxes, insurance and other costs. At a rate of 5.5 percent, the monthly payment jumps to $1,703. Over the life of the loan, that extra $93 per month adds almost $34,000 to the cost of the loan.

No Prepayment Penalty. Unlike some conventional loans, there is no penalty for prepaying your VA loan. That means you can spend extra money each month paying down your principal, which will shave years and thousands of dollars off your mortgage.

Those are just a handful of the big-time financial benefits of VA loans. These powerful lending tools have helped more than 18 million veterans become homeowners in the last seven decades.

For more information about VA Loans: Visit this link for VA Loan rates or visit VAMortgageCenter.com for more information about applying for a VA Loan.
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How to Get a VA Certificate of Eligibility

Ryan — Thu, 15 Apr 2010 16:28:36 +0000

If you’ve been wondering how to get a VA Certificate of Eligibility in order to apply for a loan through the VA Home Loan Program, there’s no need to look any further. A VA Certificate of Eligibility, which shows lenders that you may qualify for a VA home loan, is fairly easy to request.

It’s important to remember, though, that a home loan is not guaranteed even with a certificate. Potential homeowners must still meet additional requirements in order to obtain a home loan.

Why you need a VA Certificate of Eligibility

In order to qualify for a low interest VA loan with no down payment, you must have a VA Certificate of Eligibility, which is available to those people who serve or have served in one of the branches of the armed forces. In order to obtain a certificate, you must meet certain eligibility requirements as listed on the Department of Veterans Affairs website. Without the certificate, there is no way to obtain a loan through the VA Home Loan Program.

How to request a VA Certificate of Eligibility

Before you request a certificate, you’ll need to submit a copy of your discharge papers, showing how you were discharged. Those who are dishonorably discharged are not eligible for a certificate. If you do not have your discharge paperwork handy, you will need to request a copy of your for DD214 which proves military service.

Next, you need to calculate the amount of time that you served. Did you serve for a total of 90 days in a row during a time of war during World War II, the Korean conflict, the Vietnam era, or the Persian Gulf War? If so, then you are eligible.

In addition, if you served for a total of 180 consecutive days during a time of peace following times of war, then you are also eligible. If you are currently on active duty or are a surviving spouse of a veteran who died in service or as a result of service, you may also qualify. For more information on eligibility requirements, you can visit VAMortgageCenter.com.

How to Apply for a VA Certificate of Eligibility

You can apply for a VA Certificate of Eligibility in three different ways. You can apply online at the Veteran’s Information Portal, through a VA approved lender or by mail. If you are unable to print a copy Form 26-1880, you can call 1-888-244-6711 to request a copy.

You’ll need to provide basic information about yourself, like your contact information, what branch of the service you served with, your status, rank, birth date and whether or not you are married when you’re finally ready to request a copy of Form 26-1880.

If, at any time, you need help with completing any of the forms or have a question about eligibility requirements needed to apply for a VA Certificate of Eligibility, you can contact the Department of Veteran Benefits for help, or contact a company such as VAMortgageCenter.com which can help you navigate through the process, and potentially pre-qualify you for a VA Loan.
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How to Apply for a VA Loan

Ryan — Tue, 13 Apr 2010 15:00:37 +0000

If you’re unsure of how to apply for a VA loan, you’re not alone. Many people are confused when it comes to applying for any type loan, especially when dealing with the Veteran’s Administration. Purchasing a home can be daunting task, but there are certain things, that every veteran can learn to help make their home-buying process quicker and easier. And a VA loan is well worth the minimal amount of learning needed.

How to find a VA Approved Lender

VA loans are issued through VA approved lenders, like banks or mortgage companies, but are guaranteed through the Department of Veterans Affairs. A VA loan allows veterans of the armed forces the opportunity to purchase a home at a low interest rate, with no down payment as long as the loan amount is less than the appraisal amount.

There are several ways to locate a VA approved lender. The best way, though, is to visit the Ginnie Mae website where you can search for VA approved lenders by state, city and zip code.

How to Prequalify for a VA Loan

Ideally, you should prequalify for a VA loan before you begin shopping around. Prequalification means that you have a letter stating you’re prequalified for a VA loan, which will allow you to make an offer, up front, on a home that you’re interested in.

There are a couple of ways to acquire a prequalification. You can either visit a VA approved lender or you can apply online at one of the many VA loan websites, like VAMortgageCenter.com.

It’s important to note, however, that a prequalification is not the same thing as a preapproval. Once you’re prequalified, your lender can start the preapproval process, which will tell you the amount of money you have available to you once you officially apply for a loan.

How to Get a VA Appraisal

A VA appraisal of the property you plan to purchase is required with all VA loans. Before your loan is finalized, your lender will request a VA appraisal via the Department of Veterans Affairs online, where you will be assigned a random appraiser.

You should also note that you’ll most likely have to pay for the appraisal prior to finalizing your loan.

How to Finalize the VA Loan

Once your appraisal is finished, and you’re ready to finalize your loan, your lender will schedule the closing. At the closing, you’ll sign all of your loan paperwork. At that time, you’ll also need to pay any closing costs you owe.

When you understand a VA loan better, you’ll find that the entire process, from finding a lender all the way through to finalizing your loan isn’t as scary as you first thought. And it’s a highly rewarding experience that may just land you in the home of your dreams.
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What is Veterans’ Mortgage Life Insurance (VMLI)?

Ryan — Tue, 30 Mar 2010 12:59:01 +0000

Veterans’ Mortgage Life Insurance (VMLI) is an insurance program that has been designed to provide mortgage life insurance to disabled veterans and service members who are severely disabled. VMLI is designed to assist the families of disabled veterans and service members in paying off a mortgage in the untimely event of their death. Unlike Veterans’ Group Life Insurance, it is not available to all military veterans.

Who is eligible for Veterans’ Mortgage Life Insurance?

Before applying for VMLI, you should be aware that only severely disabled veterans and service members receiving a Specially Adapted Housing Grant from the Veterans Administration will be eligible for the Veterans’ Mortgage Life Insurance program. The Specially Adapted Housing Grant is used to assist the severely disabled veteran or service member in building or modifying their home in order to accommodate his or her disabilities.

PL 110-289 Extends VMLI Coverage: Effective July 30, 2008, PL 110-289 extended VMLI to disabled active duty service members as well as service members and veterans who suffer from a severe burn injury.

Applying for VMLI

Veterans and service members receiving a grant through Specially Adapted Housing are notified by Loan Guaranty personnel during their interview if they’re eligible for the Veterans’ Mortgage Life Insurance for the purpose of covering the unpaid portion of the mortgage on their home. The Specially Adapted Housing Agent will assist the veteran or service member in completing the required forms for the Veterans’ Mortgage Life Insurance at that time.

If the severely disabled veteran or service member chooses not to apply for the coverage at the time of the loan origination, the Veterans Administration will send a letter to them informing them of their eligibility for the insurance coverage. Information on their current mortgage will also be required for documentation.

How much does VMLI Cost and what coverage can you get?

The Veterans’ Mortgage Life Insurance program will provide the severely disabled veteran or service member with up to $90,000 in mortgage life insurance which is payable to the mortgage holder (such as the lender or the bank) in the untimely event of the severely disabled veterans or service members death. The coverage amount will be equal to the amount of money still owed on the mortgage and the maximum will never exceed $90,000. Veterans’ Mortgage Life Insurance is a term life insurance which decreases in value as the amount of the loan is reduced.

Premium calculators are available to assist you in determining your insurance rates. You can use the VMLI Premium Calculator for more detailed information on calculating your premium amount.

Additional information about the Veterans’ Mortgage Life Insurance

For more information on the Veterans’ Mortgage Life Insurance you can go to their site VLMI home page, where you can and download a free VMLI brochure or read more detailed information on the mortgage protection insurance and what it offers.
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What is Servicemembers’ Group Life Insurance (SGLI)

How to Convert an SGLI Policy to VGLI

Ryan — Thu, 25 Mar 2010 12:31:42 +0000

One of the most important things you need to consider when making the transition from military service to civilian life is how much life insurance you need and to make sure you are covered when you leave active duty service. Military members may need more life insurance than civilians, or it may be the opposite for your situation.

Life insurance is there to make sure your family will have a source of income if you are no longer alive to provide for them. The last thing you want is to leave active duty service and leave your family without a lifeline. Thankfully, there is a group life insurance program in place that allows military veterans to transfer their Servicemembers Group Life Insurance (SGLI) to a similar low cost group life insurance program called Veterans’ Group Life Insurance (VGLI).

Comparing SGLI and VGLI

The important distinction between SGLI and VGLI is who is eligible for either program. While SGLI is a low cost program for group life insurance covering active servicemembers, VGLI is a low cost life insurance program for military veterans, with premiums are based on the servicemember’s age. VGLI allows servicemembers to convert their SGLI coverage to a VGLI renewable term life insurance. It’s easy to convert an SGLI Policy to VGLI policy if you follow these simple steps.

How to convert SGLI to VGLI

In order convert your SGLI to a VGLI policy, you must apply within one year and 120 days from your discharge from active military service. A servicemember who submits an application within 120 days of his discharge isn’t required to submit evidence of good health. No doctor examination is required as long as he applies for the conversion within this time frame. Should a servicemember wish to apply for the conversion after the 120 day period, however, he will be required to submit evidence of good health via a doctor’s examination.

According to the VA website, in order to convert your SGLI group life insurance policy to a VGLI group life insurance policy, a servicemember can apply for the coverage change online using the VA’s online application. The online application walks you through each step of the process, including providing a chart to determine the cost of your premium amount. Your application will be evaluated instantly online and they’ll let you know if your coverage is approved, or if your application will require further review in order to provide you with the VGLI coverage.

Should a servicemember not have access to the Internet, she may also apply for the SGLI/VGLI conversion via the US postal service using form SGLV 8714. The form should be mail to the Office of Servicemembers’ Group Life Insurance (OSGLI) at PO Box 41618, Philadelphia, PA 19176-9913. You’ll need to include the first month’s premium (listed on the form), and a copy of your DD 214 or other proof of service.

It’s important to meet all the qualifications in order to successfully convert your SGLI Policy to VGLI policy, so be sure to visit the VA site, read more about it and get your required forms submitted within one year and 120 days for the best results.

Should you convert Servicemembers Group Life Insurance to Veterans’ Group Life Insurance?

Advantages of converting SGLI to VGLI. Veterans’ Group Life Insurance has a few advantages over a civilian life insurance policy because if you apply within 120 days of leaving active duty service you will not be required to take a physical or make a statement of health. In addition, if you apply to VGLI directly after leaving the service and within the 120 day window, VGLI premium rates are only based on age, and not health, gender, smoker or non-smoker, or other factors. If you have health factors that may preclude you from life insurance eligibility, then you should strongly consider VGLI.

Disadvantages of converting SGLI to VGLI.The maximum amount of life insurance coverage you may convert to VGLI is limited to the max amount of coverage you had under SGLI. So if you are planning on converting to VGLI after you separate from the military it is a good idea to increase your SGLI coverage to the max limit allowed (currently $400,000). VGLI life insurance premiums may also be more expensive for some people, especially those who are young and in good health. It is a good idea to shop around before making a purchase.

Comparing VGLI to other civilian life insurance

The main advantage was previously listed – because VGLI is a group life insurance plan, it is possible to get your policy approved without having to take a physical or other medical tests. However, it is also possible that VGLI may be more expensive than a traditional term life insurance policy available to anyone. For this reason it is a good idea to shop around for free life insurance quotes and compare life insurance premiums before electing which life insurance policy to purchase.
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What is Servicemembers’ Group Life Insurance (SGLI)

Ryan — Mon, 22 Mar 2010 00:31:56 +0000

The Servicemembers’ Group Life Insurance (SGLI) is a low cost group life insurance program for active duty servicemembers. This includes reservists, members of the National Guard, members of the Commissioned Corps of the National Oceanic and Atmospheric Administration, and Public Health Service. In addition, cadets and midshipmen of the four service academics, and members of the Reserve officer Training Corps are eligible as for SGLI coverage.

How much coverage can I get with SGLI?

SGLI coverages are available in $50,000 increments up to a maximum amount of $400,000. The $400,000 maximum life insurance policy might not be enough for your needs, so be sure to determine how much life insurance you need and shop around for a civilian health insurance policy if you need more coverage. We prepared a previous article discussing how much life insurance military members need, taking into consideration various factors specific to military members and their families.

Life insurance coverage for your family. Family Servicemembers’ Group Life Insurance (FSGLI) is an extension of the SGLI program and offers coverage for spouses and children of up to a maximum of $100,000 of insurance coverage for spouses, not to exceed the amount of SGLI the insured member has in force, and $10,000 for dependent children. Spousal coverage is issued in $10,000 increments.

How much does SGLI cost?

Servicemembers’ Group Life Insurance premiums are a flat rate and are not based on age, gender, physical conditioning, health, or other factors. Premiums are low (currently $.065 per $1,000 of life insurance according to the VA website), which makes it a cost effective program for servicemembers and their families. The monthly premiums are listed on the VA website so you can see the different premiums for different coverage amounts. In addition to the premium amounts, there’s also a table available on the site that shows servicemembers exactly how to figure out their basic coverage needs.

Benefits of Servicemembers’ Group Life Insurance

Military members who are eligible for Servicemembers’ Group Life Insurance should strongly consider SGLI because it has several major advantages over many civilian life insurance policies. The first thing to consider is that SGLI will pay out policies for deaths that occur from an act of war – many civilian policies do not have this coverage. SGLI also has an available traumatic injury rider which will pay out in the even of some injuries. Finally, insurance rates are a flat cost regardless of age, gender, health, whether you are a smoker or non-smoker, and other factors. Most civilian life insurance policies are based on age, health, and related factors.

What happens to SGLI when I leave the service?

SGLI is only available to those who are currently serving in the capacities listed above. However, there are other VA sponsored life insurance programs available, the most popular of which is the Veterans’ Group Life Insurance (VGLI) policy, which is available at a reasonable cost to former military members. VGLI is also a group life insurance program, and the rates are based only on age, and not on gender, health, smoker or non-smoker, or other factors.

Free Financial Counseling Service for SGLI Beneficiaries

The Servicemembers’ Group Life Insurance sponsors free financial counseling for recipients of SGLI benefits. The servicemembers’ life insurance policy website also provides information regarding family coverages and disability insurance for those servicemembers who are now disabled. Servicemembers can also receive personalized service regarding a tailored financial plan for their personal or family situation.

In addition, servicemembers’ specific personal issues can be taken into account and discussed using their personalized service. For example, what steps to take to meet your specific insurance coverage needs or those that may best benefit a servicemember and his family. Since the personalized service has no affiliations with any banks or investment firms, no products to sell, and aren’t working on commission, you be assured that they’ll give you objective, sound advice for your unique financial situation.

SGLI FAQs and other Questions

If a servicemember or her family has further questions regarding the SGLI is, she can visit the VA website and follow links to frequently asked questions and further information.

If a question isn’t answered in the FAQs, servicemembers can read the comprehensive overview of the SGLI program in the SGLI/VGLI handbook, which provides more information. Both are designed to be informative, and offer FAQs proficiently.

If for some reason you’re unable to locate the information you’re seeking for your specific situation, you can also contact the Personnel office of the SGLI at 1-800-419-1473 and they should be able to give you further assistance and answer any questions you may have.
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Ryan — Sat, 20 Mar 2010 02:22:54 +0000

Due to the nature of their calling, military members have special needs concerning their finances and estate planning. One notable area is concerning how much life insurance military members need. Military members can receive inexpensive life insurance coverage through Servicemembers Group Life Insurance (SGLI), which is easy to obtain and inexpensive to maintain while they are in the military. But when military members separate from military service, their life insurance needs may change. One option available to military veterans is Veterans’ Group Life Insurance (VGLI).

What is Veterans’ Group Life Insurance (VGLI)

Veterans’ Group Life Insurance (VGLI), is a life insurance program that was designed to allow service members to convert their SGLI coverage to a renewable term life insurance policy. Eligible members with full time SGLI coverage are eligible for Veterans’ Group Life Insurance upon their release from the service.

Should I get Veterans’ Group Life Insurance?

It’s important to evaluate all of your options when considering your Group Life Insurance and determine if the Veterans’ Group Life Insurance will meet your life insurance needs and expectations. You’ll want to consider whether or not the premium will be affordable to you and fit within your personal budget.

Consider whether or not the coverage will be enough to meet your specific needs or if it is enough to supplement your other coverages you already have in place. In addition, you’ll want the life insurance coverage that has the best features for you and your family.

How much coverage can I get with VGLI?

The Veterans’ Group Life Insurance (VGLI) coverage is available in increments of $10,000 up to a maximum of $400,000. A service members Veterans’ Group Life Insurance coverage cannot exceed the amount of SGLI they had in force at the time of their separation from the service.

How much are VGLI premiums?

Your life insurance premium rates are based upon your age and not your medical history, providing you apply for the benefits prior to 120 days after your separation from service. A physical isn’t required to apply for Veterans’ Group Life Insurance. Service members applying for coverage after the 120 day time period allowed will be required to submit evidence of good health.

The Veterans’ Group Life Insurance rates are the same for men and women. Premiums aren’t increased for smokers and you’ll not be excluded for mental health reasons, nor can you be excluded for PSTD or TBI. Your coverage will remain the same unless you stop payments or request a change in coverages.

With no enrollment or membership fees, your full Veterans’ Group Life Insurance coverage amount is effective as soon as you’re approved and your first premium has been paid.

Additional Veteran’s Group Life Insurance information

A full service website provides you with all the information you need to make an informed decision about your Veteran’s Group Life Insurance at your fingertips. For more information you can review their website at http://www.insurance.va.gov/sgliSite/VGLI/VGLI.htm
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Options for Refinancing a VA Loan

Ryan — Fri, 12 Mar 2010 17:35:11 +0000

Those who served our nation have access to one of the most powerful home loan programs on the planet, the VA loan. That also includes a couple of the most flexible and financially beneficial refinance programs available to consumers.

Cash-out refinancing loans and interest rate reduction refinancing loans (IRRRL or VA streamlines) are two primary, VA-guaranteed options for veterans looking to lower or reorganize their VA loan payments.

Cash-out refinancing loans

Veterans in need of refinancing a lien against their home can pursue a cash-out refinancing loan. Lenders will conduct a full appraisal and credit check, but veterans could receive a loan amount that is 100 percent of the appraised value. Should the loan amount exceed the amount needed to pay off the lien, veterans can take the difference in cash pending the lender’s approval.

Interest Rate Reduction Refinancing Loans (IRRRLs)

While cash-out refinancing requires veterans to take out the loan on their primary residence, IRRRLs only require the borrower prove prior occupancy of the property. The major benefit of IRRRLs is refinancing a VA loan at a lower interest rate. Borrowers can either reduce the original VA loan’s interest rate or convert a VA adjustable rate mortgage (ARM) loan to a fixed rate. Unless borrowers are converting an ARM loan, the monthly principal and interest will decrease.

Lenders may require an appraisal, credit check and underwriting, but the VA does not require these for IRRRLs, thus reducing paperwork for veterans. As an added IRRRL perk, veterans can add up to 10 years to the original loan term, as long as the total does not exceed 30 years and 32 days.

Just like VA loans, these refinancing options offer advantages to veterans that conventional options don’t match.

For more information on VA loan refinancing options, visit www.vamortgagecenter.com.
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VA Loan Eligibility and Financing

Ryan — Thu, 11 Feb 2010 10:25:49 +0000

This is the third in a series of posts about VA loans. Military homebuyers across the country continue to flock to VA loans. These flexible, low-cost loans have helped almost 20 million veterans become homeowners since World War II.

The government guarantees about a quarter of a borrower’s mortgage, giving approved lenders a greater degree of security. In turn, that security often leads to excellent loan terms for qualified veterans.

On the whole, VA loans are typically easier to qualify for than conventional loans. They also come with some significant financial benefits. Despite that, only a fraction of the nation’s 24 million veterans have taken advantage of their VA loan benefits.

What’s worse is that a whopping 20 percent of veterans don’t even know the program exists, according to a 2004 study by the Department of Veterans Affairs. The reality is that millions of Americans already qualify for these high-impact loans.

Qualifying for a VA loan

The VA has some initial criteria that prospective borrowers must meet in order to continue with the process. At this time, those considering a VA loan must be:

Military members who’ve served 181 days on active duty or three months during war time may be eligible.

People who have spent at least a half-dozen years in the National Guard or Reserves.

Spouses of those killed in the line of duty.

Those who fall into one of those categories must then fill out a Certificate of Eligibility, or COE. This is an official VA document that basically certifies your ability to participate in the program. Applicants can obtain these through the VA directly or through a VA broker.

VA officials look over the Certificate of Eligibility and ultimately determine whether a prospective borrower can participate.

The VA Loan Guaranty Program doesn’t have explicit income or credit standards to qualify. But the VA does not issue loans — it guarantees them. VA-approved lenders will require a credit score of at least 620.

VA Loan Limits

The VA uses a loan limit system that limits how much a participant can borrow with a VA guarantee. Throughout most of the country, qualified borrowers can get up to $417,000 without putting down a single dollar.

That limit is higher in some of the nation’s more expensive housing markets.

Except in those high-cost areas, VA borrowers looking for a house that costs more than $417,000 must cover the difference out of pocket.

For more information about VA Loans eligibility and financing, visit www.vamortgagecenter.com.
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