The VA Home Loan provides veterans with a federally guaranteed home loan which requires no down payment. This program was designed to provide housing and assistance for veterans and their families.
The Veterans Administration (VA) provides insurance to lenders in the case that you default on a loan. Because the mortgage is guaranteed, lenders will offer a lower interest rate and terms than a conventional home loan.
VA loans also have reduced closing costs and no prepayment penalties.
Additionally, there are services that may be offered to veterans in danger of defaulting on their loans.
VA home loans are available to military personnel that have either served 181 days during peacetime, 90 days during war, or a spouse of veteran either killed or missing in action.
Quick history of the VA Home Loan Guaranty Program
The VA Home Loan Guaranty Program is the only provision of the original GI Bill that is still in force.
Following World War II, there was a vast increase in the Veteran population, and Congress enacted large numbers of new benefits for war Veterans—the most significant of which was the World War II GI Bill, signed into law June 22, 1944. It is said the GI Bill had more impact on the American way of life than any law since the Homestead Act of 1862.
Between the end of World War II and 1966, one-fifth of all single-family residences built were financed by the GI Bill for either World War II or Korean War Veterans. From 1944 through December 1993, VA guaranteed 13.9 million home loans valued at more than $433.1 billion.
Eligible loan guaranty users are now able to negotiate loan terms, including the interest rate, which helps VA loan participants to compete better in the housing market. The loan guaranty program no longer has a terminating date and can be used by any Veteran who served after Sept. 16, 1940, as well as men and women on active duty, surviving spouses and reservists.
You must have satisfactory credit, sufficient income, and a valid Certificate of Eligibility (COE) to be eligible for a VA-guaranteed home loan. The home must be for your own personal occupancy.
Service during wartime:
Service during peacetime:
If you were separated from service:
Active-duty service personnel:
If you are now on active duty, eligibility can be established after 90 days of continuous active duty. Upon discharge or release from active duty, eligibility must be reestablished.
Selected Reserve or National Guard:
If you are not otherwise eligible and you have completed a total of six credible years* in the Selected Reserve or National Guard (member of an active unit, attended required weekend drills and two-week active duty for training) and one of the following:
*Individuals who completed less than six years may be eligible if discharged for a service-connected disability.
You may also be determined eligible if:
A surviving spouse who remarries on or after age 57 and on or after December 16, 2003, may be eligible for the home loan benefit. However, a surviving spouse who remarried before December 16, 2003, and on or after age 57, must have applied no later than December 15, 2004, to establish eligibility.
The spouse of a Veteran can also apply for home loan eligibility under one of the following conditions:
Other Eligible Beneficiaries
You may also apply for eligibility if you fall into one of the following categories:
VA Home Loan Hawaii
Minimum Credit Score: 550
The VA does not have a minimum credit score requirement in order to obtain the VA guaranty. However, individual lenders do set minimum credit scores and credit worthiness in order to provide the VA Home loan. At Island Lending Hawaii, the minimum credit score for a VA Home Loan is 550.
The VA Home Loan can be used to finance a range of properties as long as it is/will be for primary use and it meets VA Minimum Property Requirements (MPR). Properties that can be financed are:
VA MPR Standards:
The VA aims to protect it's veterans and imposes minimum standards on properties being financed. In existing and new construction cases, the MPR provide a basis for determining that the property is;
VA Home Loan Hawaii
The VA Home Loan has many advantages over other loans because of the guarantee the VA provides for it's veterans. This guarantee allows for more favorable terms, including:
You should also know that:
VA Home Loan Hawaii