VA Loans - Eligibility Questions

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Please use the links below to find more information about VA Loan eligibility.

Do I need to get my certificate of eligibility?

No, that is something we can help you get during the loan process. We will need some documentation from you to do so, including: DD-214 or Statement of service and a signed COE request form. (Form 26-1880) We will need a satisfactory certificate of eligibility showing sufficient entitlement to close on your VA loan.

How do I get my COE?

The easiest way is to get it is during your loan process. Normally your lender can assist you in getting it with the proper paperwork. It has to be requested from the VA eligibility office in Winston-Salem, North Carolina. You will need your discharge papers (DD-214) for retired military and a current statement of service for active duty personnel. Your lender should send you a COE request form (form 26-1880) at the beginning of the loan process.

Can I use my COE (Certificate of Eligibility) for anything besides a home?

No, your COE is specifically for the purchase of a primary residence, it cannot be used for any other purpose.

How long is my COE (Certificate of Eligibility) good for?

Your certificate is good until you use it, however, many lenders will require you to get an updated one within 60 days of your closing to verify that it hasn't been used.

I was told that every veteran is guaranteed a home loan. Is that true?

Not exactly true, every veteran that meets the service requirement is guaranteed eligibility for a VA home loan. They do have to qualify for this home loan based on credit and income. For more information about home loan requirements, check out VA Home Loan Requirements FAQ's.

How long do I have to be in the military to qualify?

There are many factors including if you are reserve or active. During wartime you need 90 days and during peacetime you will need 181 days. This can differ depending on circumstances, but it is a good rule of thumb.

How many people can I have on my VA loan?

The only person that can be on traditional VA loan is the eligible veteran or active duty member and his or her spouse. There are also some joint VA loans where two eligible veterans can be on the same loan.

Can I add someone to the title of my VA loan later?

Yes, you can add people to the title of your home at any time. You will not be able to add or remove people from the mortgage note unless you refinance.

Am I eligible for a VA loan if my husband was in the military?

Yes, you could be eligible. To be eligible, your husband would have to have died while on active duty or due to a service related disability. If so, you are also exempt from the funding fee.

Can I use my girlfriend/boyfriend on the loan?

No, for a true VA loan, the only person that can be on the loan with you is your spouse.

I am deployed. Can I still purchase a home?

Yes, you can still purchase a home if you are deployed. It will have to be your primary residence when you return.

Am I eligible if I am in the National Guard?

Yes, you will still be eligible if you are in the National Guard as long as you meet the service requirements for the loan. The service requirements for National Guard are 181 days of service. Without being activated that corresponds to about 6 years of service in the guard.

If I was injured my second day of basic training and left the military am I eligible for a VA loan?

Yes, you should be. If you have a medical discharge from the military you should be eligible to use you VA home loan benefits.

If someone has a dishonorable discharge are they still eligible for a VA loan?

No, in most cases an honorable discharge is required for eligibility. However, other discharges, such as medical, are also eligible.

Is there an age limit on VA loans?

No, there is no age limit on a VA loan, if you qualify based on credit and income you are eligible for VA guaranteed financing.

Can I get a VA loan if I am self-employed?

Yes, you can get a VA loan if you are self-employed. You do have to be able to prove your income and a history of receiving it. We will need 2 years of tax returns to prove what we can count as your income. If you haven't been self-employed for 2 years total, we may have trouble proving your income. There are other programs not related to VA that we can help you with in those cases.

I have used my VA loan before, am I still eligible?

Yes, you can use a VA loan as many times as you want. When you use it for a second time you will have an increased funding fee depending on your status. You need your entitlement restored from your previous use or have enough entitlement left to cover your new purchase or refinance. To fully restore entitlement, the previous or current VA loan will have to be paid in full.

I have no credit. Can I get a VA loan?

Yes, you can still get a VA loan because having no credit is not a sign of bad credit. You will have to prove that you have been paying on four items with no problems for the last 12 months. Items include: Rent, cable, electric, insurance, cell phones and any other liability that you can prove timely payments on a monthly basis. To get started on your VA loan, simply contact a VA Loan Specialist.

My credit is bad; my spouse's is good. Can we still get a VA loan?

It is possible. The problem is that most loans take the worst credit history of the applicants and use that to qualify. It would depend on what items made your credit bad and how long ago they occurred. It is possible that your spouse's good credit would possibly be a strong enough compensating factor in getting you approved.

Can I have two VA mortgages at one time?

Yes, it is possible to have two VA mortgages at one time. If you currently have a VA mortgage you have to have sufficient entitlement left on your COE to purchase another one. If you do not have sufficient entitlement, you will not be able to do so.

Can I refinance my VA first mortgage if I have a second mortgage?

Yes, you can refinance your VA mortgage and sometimes even get cash out if you have a second mortgage. The company that has your second mortgage has to agree that they are fine with this before you can proceed.

I have a conventional loan. Can I refinance this into a VA loan?

Yes, but you will need the necessary equity in your home to do so. The maximum the VA loan can go is up to 90% of your appraised value, so if your current conventional loan is over 90% then you would not be able to transfer it into a VA loan.

Can I refinance my house up to 100% with a VA loan?

No, you can only go up to 90% of your home's value with a VA loan and sometimes based on the value of your home it is under 90%.

Can I buy a home with a tax lien on my credit report?

You can be qualified for a home loan with a tax lien on your credit report, but it will have to be paid off before you are able to close. Lenders will often allow you to satisfy the tax lien on the day of closing.

My last VA loan was foreclosed upon. Can I get another VA loan?

Yes, it is possible to get another VA loan, but it depends on the foreclosure cost to the bank. You will most likely have reduced entitlement and have to pay the VA back before you are eligible to get your entitlement restored.

How long do I have to wait on my VA loan if I have had a bankruptcy?

Depending on the chapter you filed you will have to wait between 12 and 24 months from discharge before you can use your VA benefits to buy a home. On a Chapter 7, you have to have the bankruptcy discharged for 2 years (24 months). On a Chapter 13, it has to have been discharged for 12 months or if it is not discharged you have to prove that you have made timely payments on it for a minimum of 12 months.

Can I use my VA loan to pay off debt?

You can get cash out on the equity of you house with a VA refinance. You can use that cash out to pay off any debt that you would like. You cannot get cash out on a purchase to pay off debt.

Can I use the VA loan to get a business or commercial loan?

No, your VA loan is only good for residential property.

Can I use a VA loan for investment properties?

No, you cannot use a VA loan to purchase an investment property. The VA loan is only good for your primary residence. You can do a streamline VA refinance on an investment property that you previously lived in and are now renting out as long as it still has your current VA loan on the property.

Can I use my VA loan to purchase a foreclosed property at auction?

Yes, you can purchase a foreclosed property at auction. Keep in mind that the appraisal will have to come back with no repairs needed or if repairs are required they will need to be fixed before closing.

Can I use my VA loan to buy land to build a house on?

You cannot buy only land with your VA loan. However, the VA does offer construction loans. Many lenders do not offer VA construction loans at this time. The VA will allow you to refinance your construction loan so that you conventionally get up to 100%.

Can I buy a condo with my VA loan?

Yes, you can buy a condo with your VA loan. Keep in mind that it has to meet certain criteria to be VA approved and needs to be in a VA approved condominium complex.

Can I use the VA loan to purchase a log home?

Yes, you can purchase a log home with your VA loan. Keep in mind it does have to appraise for the price the seller is asking for it, so there will have to be log homes in the area for the appraiser to compare to.

Can I buy agricultural land?

No, you cannot buy the land by itself with your VA benefits. You can buy land if it has a home that you plan to have as your primary residence; however you cannot use farm equipment, livestock, etc. for qualification purposes on the proposed property.

Can I use a VA loan for a boat house?

No, the VA loan cannot be used for a boat house. It can only be used for residential property.

Can I use my VA loan overseas?

No, currently the VA does not offer financing overseas.

VA Loan Specialist

VA LOAN SPECIALIST

If you have questions or if you want to determine if a Veteran Home Loan is actually the best financial decision for you, you may get advice from a VA mortgage specialist online or call 800-405-6682.

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