VA guaranteed mortgage loan and how you can get one

What is a VA Guaranteed Mortgage Loan?

VA mortgages, like FHA mortgages, are loans that eliminate most of the risk of default to the lender. Like the FHA loans, the seller may be required to pay for certain costs and the loan itself is calculated favorably to the buyer. The VA mortgage also requires that the property pass an additional VA inspection. The VA is not the issuer of the money, but only the guarantor that the lender will not totally lose if the veteran defaults on the mortgage.

Who can get a VA Guaranteed Mortgage Loan?

To get a VA loan, the home buyer must be an eligible veteran who intends to live in the property as his or her primary residence and who has sufficient income to meet mortgage payments, home expenses, and other legal obligations. The veteran's credit record is also looked at in the process of obtaining a VA loan.

How can I determine if I am an eligible veteran?

Generally, the length of time in the particular service, the time on active duty, the branch of service, and reasons for your discharge are looked at. The eligibility requirements are quite extensive and require that the veteran obtain a Certificate of Eligibility, which qualifies the veteran for the loan. The website homeloans.va.gov has all the details to determine if you can be qualified for the VA Guaranteed Mortgage Loan. You will be required to fill out form VA 26-1880 and submit this plus a proof of your service in order to obtain your Certificate of Eligibility.

What is the maximum VA Guaranteed Mortgage Loan that a veteran can get?

Currently there is no maximum, other than the veteran's ability to make monthly mortgage payments, pay normal housing expenses such as utilities, and continue with any legal obligations such as child support or spousal support. The property must also appraise for an amount close to or under the amount of the mortgage loan. Because it is private lenders and not the VA that actually makes the money available, it is really up to the lender as to the maximum of the loan available.

What purposes can a VA Guaranteed loan be used for?

To buy a single-family home, a townhouse, a condominium unit
To build a home
To repair, alter, or improve a home (may be able to obtain additional funding to improve a home for handicapped access for a disabled veteran returning from conflict)
To improve a home by installing energy efficient improvements such as solar heating
To refinance an existing home loan
To buy and improve a lot for a currently owned manufactured home

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