VA Home Loan Pre Approval

What is a VA loan for a house?

VA Home Loan is Popular mortgage option in united states for veterans,Service Members and National Guards.This loans is just like another mortgage loan but the main difference is Va loan is for veterans with some strict requirement.If you Qualify in that requirement you will get full finance for build Houses or repair and refinance loan.

In United States more than 3.7 Million of veterans are now owners of their own home. This Loan is very benificial for veterans cause they get the finance upto 100 % of appraised value of home. In other mortgages plan , borrower should pay 20-25% of Down payment at purchasing time and remaining 75-80 % loan will be approved .but in this loan they allow veterans to purchase home with 0% down payment. This is big relief for the housebuyer, with this they offer a lower interest rates as compare to the conventional loans.

How to get VA Loan ?

For getting Va loan their are some eligibility criteria and specific terms for this. Government does not finance directly, they give this whole procedure to private lenders like mortgage companies and bank this institutes offer VA home loans

It Does’nt like private institutes offer loan by their own interest or terms.No, Its Not like that eligibility criteria and document requirement is same for all this institutes. For getting loan you have COE (Certificat of eligiblity) From VA Office,this is major document you provide to lenders.

VA Loan Eligibility Requirements

As we mention above first important document you need is valid Certificate of Eligibility (COE). This COE shows you have met minimum service requiremnt for eligibility for home loan throught the United States Department of Veterrans Affairs.

Requirements are as follow:

• 181 days served during peacetime (Active Duty)
• 90 days served during wartime (Active Duty)
• 6 years served Reserves or as National Guard or 90 days under title of 32 duty,atleast 30 duties are in continuous.
• Survived a spouse who was killed in line of duty or lost life from service related disability.

Their are some distinct requirement,for more information about wartime service and pea just go through official website .

Also for verification of your service time and COE, you need Military Discharge Document (DD214). If you don’t have hard copy then you can get this online also. If you are not retire from service then you need Leave and Earning Statement (LES) for showing your military status and income for qualify this loan.

Important Documents :

• W-2s
• Pay stubs
• Proof of employment
• Bank statements
• Current driver’s license
• Social Security card

Who is benificial from VA Home Loan ?

Service Members

Service members who meet active service duty requirement can apply for this Loan Scheme.

Veterans

Veterans eligible criteria is based on period of war in which you served. Even if you are not in wartime still you can apply for the loan, if you have been discharged from war due to below reason :

• Service Related Disability
• Reduce in force
• Hardship

National Guards

National guards who work in service for at least 90 days after August 2,1990 this is minimum criteria for national guards. for other periods , you either work for 6 crediabalbe years of service from which borrower honorable retired or discharged from work.Their is another option for this also , you should have atleast 90 days of non training active duty, out of this work 30 days consecutively.

Reserve Members

This people have atleast 90 days of active ducty after August 2,1990. Also work atleast 90 days of non training or 6 years in service or you were discharge honorably, retire or working member at present. Their is another option also have if you transferred to standby Reserve this is minimum criteria for loan.

Surviving Spouses

If you was a spouse of Veteran,you can applya for VA home loan. For this you have to this requirement :

• Veteran is a prisoner of war
• veteran is missing in action.
• Died while in service or from service related disability and you didn’t remarry.
• Died while in service or from service related disability and you didn’t remarry, until you were over 57 years old or before December 16, 2003.
• Veteran was disabled but died due to other causes.

How to Qualify for a VA Home Loan

• Credit Score : Their is no required minimum credit card score.
• Income : This is amount of money for you and your family for earch month beside your basic living funds.
• Funding Fee : In this loan scheme you have to pay one time funding fees.Generaly this funding fees lying between 1.4% to 3.6% on your whole home loan amount. But their is exemption on this fees for Disabled Veterans and Surviving Spouse.
• Reserve Funds : No need of any reserve fund. but for safety you must have Reserve Funds.

Different Type of VA Loans

In VA loan scheme there are mainly four type of loans Purchase Loans, Native American Direct Loan(NADL), Interest Rate Reduction Refinance Loan (IRRRL), last one is Cashout Refinance Loan.

Purchase Loans: In this loan type you can Buy , renovate or build home without down payment .

Native American Direct Loan (NADL) : In this you can buy, build and refinance the home on trust land . And also get benifits of low interest rates.

Interest Rate Reduction Refinance Loan (IRRRL) : In this type of loan you can benifits in refinance the current loan and reduce monthly mortgage payment .

Cashout Refinance Loan : Its helps to replace an existinge loan with different terms . Its give option to Convert your general loan in VA Loan.

Steps to Apply for VA Home Loan

Check eligibility for loan
Apply for VA Home Loan Pre approval
Find a Lender
Get Your Finances checked
Check & Sign Document

How To apply for VA Home Loan Pre approval :

• Check your credit score
• Pick mortgage plan for you
• Give needed documents of Mortgage preapproval
  • Proof of Income
  • Employment Verification
  • Credit History
  • Proof of Assets
  • Personal Identification
  • Bank Statements
  • Debt-to-income Ratio (DTI)
  • W-2 Statements
  • Pay Stubs
  • Social Security Number
  • Driver’s License
• Comapare lenders
• Get VA Home Loan Pre approval Letter