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?

Determining eligibility for a VA loan can be a complicated state of affairs. It depends on time served as well as what your military status was. A general rule of thumb on your eligibility for active duty Army, Navy, Air Force, Marines or Coast Guard is 90 days active any part during wartime. For non wartime you will need 181 days of continuous service. To be eligible under these factors 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 are only at 1 day. If you are a member of the reserves or national guard, you will be eligible after 6 years of service with the same discharge requirements. If you have been activated in the reserves, you will fall under the same criteria that an active duty member would. For current active duty military, the same day requirements will apply, however there will be no discharge requirement, because obviously you are not discharged yet. The spouse of a veteran may also be eligible if the veterans death was a result of a service connected causes, or the veteran is listed as MIA was was a POW for 90 days.

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

Your VA loan will be through a private lender. The VA doesn't give the loans themselves, they guarantee the loans that lenders give. 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 downpayment requirements for a VA loan?

This is one of the main benefits that a VA loan offers. There are no down payment requirements on a VA loan. You get 100% of the purchase price and often times if the seller is willing to help out with closing costs the borrower may be able to get into their home with no money out of pocket at all. A true conventional loan requires at least 5% down payment, making the VA loan even more of an advantage for the veteran or active duty member.

Where can I research further information on VA loans?

There are many ways to research VA loans. The way I recommend is to call a VA loan specialist and talk to them about your specific case, you can also contact your regional VA office and they can answer lots of questions.

Are there VA refinances and are there any benefits associated with refinancing a loan using the VA program?

The VA also will guarantee a refinance as another benefit to the veteran or active duty member. Once you have a VA loan, you will be eligible for what is called a VA streamline refinance. This will allow you to lower your rate if market rates drop without having to re-qualify based on credit and income. The only requirement for qualifying for this streamline refinance is that you cannot have a late payment on your current VA mortgage within the last 12 months. The VA also offers a refinance 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 would like, including paying off other debts, getting cash for upgrades, or just to get a little extra for Christmas or that much needed vacation. With a normal cash out loan (not VA) you will usually receive a higher interest rate based on the added risk to the lender for getting the cash out. This is not the case for a VA.

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

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

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

It will not affect you much at all. You can pick either to use your certificate of eligibility or your wife's and it will have no impact on details of the loan. One positive way to look at that is that for subsequent VA loans you normally have an increased funding fee, however that is based on use of eligibility on the certificate. For your next home purchase you could use your wife's eligibility and not pay the increased funding fee.

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

Getting divorced will not affect your eligibility, however if your eligibility is tied up in a current home loan that could affect your ability to get a VA loan. If your eligibility is tied up in a current home, you may be eligible for tier 2 entitlement where you can still purchase another home using the remaining eligibility you may have.

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.

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