Ask the Expert your VA Loan Questions

Welcome to our new "Ask the Expert" section here at VA Mortgage Center.com. In this section you will find questions submitted by our visitors about many different aspects of the VA Home Loan Program. All of these questions have been personally answered by our very own VA expert.

Find information on the intricacies of a VA Loan or VA Refinance below. Also, we'd love to hear from you! If you have a question that is not answered on our website, please submit it and our expert will get back to you shortly.

Please use the links below to find answers to some previous VA Loan questions.

• How can I determine my eligibility for a VA Loan?
• Will my VA Loan be through the government, a private lender or both?
• What are the down payment requirements for a VA Loan?
• Where can I find more information on VA Loans?
• Are there VA Refinances and are there any benefits associated with refinancing a loan using the VA Home Loan Program?
• Can I use a VA Loan for a farm or business?
• My wife and I are both eligible for a VA loan, how does that affect us?
• I just got divorced, can I obtain another VA Loan for a new house?
• With all the foreclosures happening now, can I purchase a foreclosed home from the VA?

How can I determine my eligibility for a VA Loan?

Determining eligibility for a VA Loan can sometimes be a complicated state of affairs. Your eligibility depends on time served and the branch of the Military in which you served. A general rule of thumb on your eligibility for active duty Army, Navy, Air Force, Marines or Coast Guard is 90 days active during wartime. For peacetime, you will need 181 days of continuous service. To be eligible under these guidelines, your discharge from the Military had to be under conditions other than dishonorable. Cases involving other than honorable discharges will usually require further research by the VA. Medical discharges are acceptable and the service time requirement for those is only 1 day. The same requirements apply for active duty Military, with the exception of the discharge requirement (since you have not been discharged).

If you are a member of the Reserves or National Guard you will be eligible after 6 years of service and have the same discharge requirements as mentioned above. If you have been activated in the Reserves or National Guard, you will fall under the same criteria as an active duty member. The spouse of a Veteran may also be eligible if the Veteran's death was a result of a service related cause or the Veteran is listed as MIA or was a POW for 90 days.

Will my VA Loan be through the government, a private lender or both?

Your VA Loan will be through a private lender. The VA doesn't give the loan itself; it guarantees the loans that lenders issue. All lenders have to follow the same guidelines of approvals in order to get the loan guaranteed by the VA. The VA guarantee allows them to offer this special program to those that served or are serving.

What are the down payment requirements for a VA Loan?

One of the main benefits of VA Loans is that there is no down payment requirement. You get 100% of the purchase price for properties within the VA Loan limit and often times, if the seller is willing to help with closing cots, you may be able to get into your home with no money out of pocket. A true conventional loan requires at least 5% down, making a VA Loan even more of an advantage for Veterans and active duty members.

Where can I find more information on VA Loans?

There are many ways to research VA Loans, including our VA Loan Library and the VA's website. I recommend calling a VA Loan Specialist to talk about your particular case. You can also contact your regional VA office for answers to your specific questions.

Are there VA Refinances and are there any benefits associated with refinancing a loan using the VA Home Loan Program?

Another benefit of the VA Home Loan program is that the VA will guarantee a refinance for eligible Veterans and active duty members. If you already have a VA Loan, you will be eligible for a VA Streamline Refinance, also known as an Interest Rate Reduction Refinancing Loan (IRRRL). This will allow you to lower your rate if market rates drop without having to re-qualify based on your credit and income. The only requirement for qualifying for an IRRRL is that you cannot have a late payment on your current VA Mortgage within the last 12 months.

The VA also offers a refinance option that will allow you to borrow up to 90% of the appraised value of your home. You can use this equity to do anything you like, including paying off other debts, getting cash for home improvements or just to have a little extra for Christmas or that much needed vacation. With conventional cash-out loans you will usually receive a higher interest based on the added risk to the lender for getting the cash out. This is not the case with a VA Cash-Out Refinance.

Can I use a VA Loan for a farm or business?

The VA does not currently offer farm loans or business loans. However, you can buy a home with acreage without a problem, as long as there are other comparable properties that have recently been sold in the area.

My spouse and I are both eligible for a VA Loan, how does that affect us?

There will be very little effect. You can choose to use your Certificate of Eligibility or your spouse's and it will have no impact on the details of the loan. One benefit of having an eligible partner is that you can avoid the increased funding fee for subsequent VA Loans. For your next home purchase you could use your spouse's eligibility and not have to pay the increased fee.

I just got divorced, can I obtain another VA Loan for a new house?

You will still be eligible, but you must have remaining entitlement to take out a new VA Home Loan. This means that the amount of your new loan can only be as much as the difference between your current VA Loan and the maximum VA loan limit. If the cost of your new home falls within this gap, you may be eligible for tier 2 entitlement. This will allow you to purchase another home with the remaining entitlement. A VA Loan Specialist can help you figure out the best options for your individual case.

With all the foreclosures happening now, can I purchase a foreclosed home from the VA?

The VA does have properties that have been foreclosed on. My understanding is getting lists of these is not an easy task, for your best information on VA foreclosures I would contact your regional VA office.