All About VA Loans

Did you know that the Department of Veteran's Affairs helps service members, veterans, and eligible surviving spouses become homeowners? VA Home Loans are provided by private lenders such as banks and mortgage companies, but the VA guarantees a portion of the loan which enables the lender to provide you with more favorable terms.

The key elements of a VA Home Loan include no down payment required (some lenders may require a downpayment, but the VA does not), low-interest rates, limited closing costs, no PMI (private mortgage insurance), and is a lifetime benefit of the VA.

In order to qualify for a VA loan you will need to meet the following criteria according to the United States Department of Veterans Affairs:

Service Requirements for Veterans or members on active duty:

When did you serve? You meet the minimum active-duty service requirement if you served for at least this amount of time: Between September 16, 1940, and July 25, 1947 (WWII)

• 90 total days, or

• Less than 90 days if you were discharged for a service-connected disability

Between July 26, 1947, and June 26, 1950 (post-WWII period)

• 181 continuous days, or

• Less than 181 days if you were discharged for a service-connected disability

Between June 27, 1950, and January 31, 1955 (Korean War)

• 90 total days, or

• Less than 90 days if you were discharged for a service-connected disability

Between February 1, 1955, and August 4, 1964 (post-Korean War period)

• 181 continuous days, or

• Less than 181 days if you were discharged for a service-connected disability

Between August 5, 1964, and May 7, 1975 (Vietnam War), or

February 28, 1961, to May 7, 1975, if you served in the Republic of Vietnam

• 90 total days, or

• Less than 90 days if you were discharged for a service-connected disability

Between May 8, 1975, and September 7, 1980 (post-Vietnam War period), or

Between May 8, 1975, and October 16, 1981, if you served as an officer

• 181 continuous days, or

• Less than 181 days if you were discharged for a service-connected disability

Between September 8, 1980, and August 1, 1990, or

Between October 17, 1981, and August 1, 1990, if you served as an officer

• 24 continuous months, or

• The full period (at least 181 days) for which you were called to active duty

Between August 2, 1990, and the present (Gulf War)

• 24 continuous months, or

• The full period (at least 90 days) for which you were called or ordered to active duty, or

• At least 90 days if you were discharged for hardship, a reduction in force, or for convenience of the government, or

• Less than 90 days if you were discharged for a service-connected disability

You separated from service after September 7, 1980, or

After October 16, 1981, if you served as an officer

• 24 continuous months, or

• The full period (at least 181 days) for which you were called or ordered to active duty, or

• At least 181 days if you were discharged for hardship, a reduction in force, or for convenience of the government, or

• Less than 181 days if you were discharged for a service-connected disability

I'm on active duty now 90 continuous days

Service Requirements for National Guard and Reserve Members:

When did you serve? You meet the minimum active-duty service requirement if you served for at least this amount of time: Between August 2, 1990, and the present (Gulf War)90 days of active-duty service Any time period 6 creditable years in the Selected Reserve or National Guard, and one of the descriptions below is true for you

At least one of these must be true. You:

• Were discharged honorably, or

• Were placed on the retired list, or

• Were transferred to the Standby Reserve or an element of the Ready Reserve other than the Selected Reserve after service characterized as honorable, or

• Continue to serve in the Selected Reserve

If you do not meet the minimum service requirements, you may still be eligible if you were discharged for one of the following reasons:

• Hardship

• The convenience of the government (you must have served at least 20 months of a 2-year enlistment)

• Early out (you must have served 21 months of a 2-year enlistment)

• Reduction in force

• Certain medical issues

• A service-connected disability

If you are interested in buying a home, I highly recommend that you read the VA Home Buyer's Guide. Then call me and I will help you get situated with a mortgage professional who can get you pre-approved and we can start searching for your new home.