The VA Loan was designed to provide housing and assistance for veterans and their families, so the dream of homeownership could become a reality for millions of veterans.
Eligibility for the VA loan is defined as Veterans who served on active duty and have a discharge other than dishonorable after a minimum of 90 days of service during wartime or a minimum of 181 continuous days during peacetime. There is a two-year requirement if the veteran enlisted and began service after September 7, 1980, or was an officer and began service after October 16, 1981. There is a six-year requirement for National guards and reservists with certain criteria and there are specific rules concerning the eligibility of surviving spouses.
VA will guarantee a maximum of 25 percent of a home loan amount up to $104,250, which limits the maximum loan amount to $417,000. Generally, the reasonable value of the property or the purchase price, whichever is less, plus the funding fee may be borrowed. All veterans must qualify, for they are not automatically eligible for the program.
VA guaranteed loans are made by private lenders, such as banks, savings & loans, or mortgage companies to eligible veterans for the purchase of a home, which must be for their own personal occupancy. The guaranty means the lender is protected against loss if you or a later owner fails to repay the loan. The guaranty replaces the protection the lender normally receives by requiring a down payment allowing you to obtain favorable financing terms.
Your DD Form 214
Your DD-214 is your proof of military service. It shows the nature of your discharge, dates of service, and current classification (retired, separated, Guard or Reserve status). The DD-214 is one of the most important documents you’ll get when you leave military service. You’ll need it to claim military benefits including VA loans, the GI Bill, and medical services provided by the VA.
Request your DD 214 by clicking here. (Veterans ONLY)