VA Home Loan Guarantee for Military Active Duty & Veterans 

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WHO IS ELIGIBLE?

Generally, the following people are eligible:

  • Equal opportunity for all qualified Veterans to obtain a VA loan;
  • Veterans who meet length of service requirements;
  • Service members on active duty who have served a minimum period;
  • Certain Reservists and National Guard members; and
  • Certain surviving spouses of deceased Veterans 

WHAT IS A VA GUARANTEED HOME LOAN?

  • VA-guaranteed home loans are made by private lenders, such as banks or mortgage companies;
  • These loans are made to eligible Veterans for the purchase of refinance of a home for their personal occupancy;
  • VA Guarantees the loan to protect the lender against loss if the payments are not made; and
  • VA Guaranteed home loans encourage lenders to offer Veterans loans with more favorable terms.

WHAT CAN A VA-GUARANTEED HOME LOAN BE USED FOR:

  • To buy a home, condominium or townhouse;
  • To build a home - existing or pre-construction, as a primary residence;
  • To repair, alter, renovate and improve a home;
  • To simultaneously buy and improve a home;
  • To refinance an existing home-loan to reduce the interest rate; and
  • To improve a home by installing energy-efficient features (solar heating / cooling systems, water heater insulation, weather-stripping / caulking, storm windows / doors or other energy improvements approved by both the lender and VA).

BENEFITS OF A VA GUARANTEED HOME LOAN:

  • No down payment (unless required by the lender or the purchase price is more than the reasonable value of the property);
  • Veterans receiving VA disability compensation are exempt from the VA funding fee;
  • One time VA funding fee that can be included in the loan;
  • No mortgage insurance premiums;
  • VA limits certain closing costs a Veteran can pay;
  • Limitations on closing costs;
  • Negotiable interest rates;
  • Right to repay without penalty;
  • Can be assumed by qualified persons;
  • Minimum property requirements to ensure the property is safe, sanitary and sound; and
  • VA staff dedicated to assisting Veterans who become delinquent on their loan.

RESTRICTIONS

  • VA can not guarantee that a home is free of defects. It is your responsibility to ensure that you are satisfied with the property;
  • The VA appraisal is not an "inspection" of the property. (Get expert advise from a qualified residential inspection service. You are also encouraged to have radon testing performed);
  • If you have a home built, VA can not compel the builder to correct construction defects, although VA does have the authority to suspend a builder from further participation in the VA Home Loan Program;
  • VA can not guarantee that you making a good investment; and 
  • VA can not provide legal services.

rEQUIREMENTS FOR A VA-GUARANTEED HOME LOAN:

  • You must be an eligible Veteran who has  available VA Home Loan entitlements (except in the case of a Interest Rate Reduction Refinancing Loan (IRRRL));
  • The loan must be for an eligible purpose;
  • You must occupy or intend to occupy the property as your home within a reasonable period of time after closing the loan;
  • You must have enough income to make the new mortgage payments on the loan, cover the costs of owning a home, take care of other obligations and expenses and still have enough income left over for family support (a spouse's income is considered in the same manner as the Veteran's'); and
  • You must have a good credit record.


THE GUARANTY:
VA guarantees the loan when it is closed. The guaranty means the lender is protected against loss if you are unable to repay the loan.

Please fill out the following form for additional information on this loan!

Excerpt from U. S. Department of Veterans Affairs
Andre S. Hobbs, Realtor
Andre S. Hobbs, Realtor
Military Veteran (U. S. Navy)
1061 Tierra Del Rey Ste 202 Chula Vista CA 91910