The VA loan program is an important tool that helps veterans be able to afford their dream homes. This benefit, which is supported by the U.S. Department of Veterans Affairs (VA) offers military members the opportunity to obtain loans with favorable terms. The VA home loan is given by private lenders, but it is guaranteed by the VA.
If you served in the military, you may qualify for a veterans home loan. However, it is important that you understand how this program works before you enroll.
The following sections outline the VA house loan criteria you need to be aware of before you apply for this funding opportunity.
About VA Loan Types
Before you learn about the specific VA loan requirements you need to meet, you need to familiarize yourself with the different types of loans. You may be wondering, “How does a VA loan work?” In fact, there are two main types of loans associated with the VA. The first option is where the department acts as the mortgage lender.
This means the VA gives you the funds you need for your loan, and you pay the department back directly.
Alternatively, you can apply for a VA house loan where the loan you obtain from a private lender is backed by the department. If you take advantage of this option, you are usually able to receive a loan that has more favorable terms for you.
This is because VA-backed loans are generally viewed as more secure than loans where only the borrower is responsible for paying. With a VA home loan, the VA guarantees it will pay a portion of your loan if you cannot.
Who can apply for a VA home loan?
There are certain VA home loan qualifications for eligibility that you need to meet before you can apply for this financing option. In general, individuals who are currently serving in the armed forces may apply for a loan. Veterans and surviving spouses may also be eligible to take advantage of this opportunity.
However, VA home loan eligibility also has certain service-related requirements you need to meet. This varies based on whether you are a veteran or a member of the National Guard and Reserve.
Furthermore, the specific requirements you must meet relate to how long you served in active duty and when you served. These requirements relate to military personnel who are currently on active duty, as well as individuals who served during:
- World War II.
- The Korean War.
- The Vietnam War.
- The Gulf War.
If you have specific questions about whether you qualify for veterans home loans, contact your local VA representative. He or she can help you determine what you are eligible for.
How to Apply for Veterans Home Loans
Once you have examined the different VA home loan rates you could be responsible for, you can apply for your loan. One of the simplest ways to apply for funding is through the VA’s website.
This option is simple and easy to complete. Furthermore, you can submit your loan application from anywhere, as long as you have a secure internet connection.
If you do not want to apply online, you can also apply for a VA house loan by mail using VA Form 26-1880. Keep in mind, though, that this option takes longer to receive and process than if you apply online.
Additionally, if you want to apply for a VA-backed loan, you can do so by applying directly through the lender. If the institution you are borrowing from has access to the WebLGY, you can submit your application in person. With this option, you will be able to learn quickly if you qualify for one of the veterans home loans.