What do I need to do to qualify for a VA Loan?

VA Home Loans are provided by private lenders, such as banks and mortgage companies. VA guarantees a portion of the loan, enabling the lender to provide you with more favorable terms. Because of the VA guarantee you must meet one of the following requirements.

• Served 90 consecutive days of active service during wartime, OR
• Served 181 days of active service during peacetime, OR
• 6 years of service in the National Guard or Reserves, OR
• You are the spouse of a service member who has died in the line of duty or as a result of a service-related disability.

Why would I get a VA Loan instead of a regular home loan?

VA Loans are backed by the federal government. This assurance to lenders makes a VA Loan low risk and thus lenders can offer competitive rates. In addition to low rates VA Loans have the following perks:

• No Down Payment - yep, 0% down. So, our veterans and service members can purchase a home as soon as they want, not when they "save enough money."
• No Mortgage Insurance - other loans require borrowers to pay Premium Mortgage Insurance (PMI) if they pay less than 20% of the purchase price as a down payment. VA Loans don't require PMI even with 0% down.
• Seller's can pay closing costs - even better than 0% down, sellers can pay the closing costs and veterans can buy a house with no out of pocket costs.

What if I've used a VA Home Loan Before?

According to benefits.va.gov you are eligible.

You can do a back to back closing. You can close on your new home, sell your old home, and still qualify for a VA Loan. As long as you go through the process of restoring the loan, you can qualify for a VA Loan as many times as you want!

Here's the process...

Your eligibility is reusable depending on the circumstances. Normally, if you have paid off your prior VA loan and disposed of the property, you can have your used eligibility restored for additional use. Also, on a one-time only basis, you may have your eligibility restored if your prior VA loan has been paid in full but you still own the property.

In either case, to obtain restoration of eligibility, the veteran must send a completed VA Form 26-1880 to our Atlanta Eligibility Center. To prevent delays in processing, it is also advisable to include evidence that the prior loan has been paid in full and, if applicable, the property disposed of. This evidence can be in the form of a paid-in-full statement from the former lender, or a copy of the HUD-1 settlement statement completed in connection with a sale of the property or refinance of the prior loan.