My New Blog

Living in Jacksonville NC, and working as close as I do to Camp Lejeune, Camp Johnson, and Marine Corp Air Station New River, it makes sense that a vast majority of my clients are military or prior military.  In my experience, every military person knows that they have access to a VA loan.  However, to my surprise, they are not always told exactly what a VA loan does for them or how it works. 

In response to this need, I have decided to do a series of blogs about VA loans, what they are, and how they work for you.  The first thing that I will discuss is:

• What is a VA loan?

        The VA loan began in 1944 through the GI Bill of Rights.  This provides  veterans with a federally guaranteed home loan with no down payment.  VA guaranteed loans are made by approved lenders, like banks or mortgage companies, to eligible veterans for the purchase of a primary residence.  The guarantee of a VA loan means that the lender is protected against financial loss in the event that the borrower fails to repay the loan.  It replaces the protection that lenders would normally have by requiring a down payment.  Essentially, this allows you to get a loan with no down payment, and often with a better interest rate.

Are you thinking about buying a home?  If so, please feel free to contact me with any questions that you might have or find more information on my website at www.AlexisWithEXIT.com.

In my last blog, I briefly discussed the history of the VA loan and how it applies to the servicemen and women that may use it.  In this segment, I wanted to discuss the applications that a VA loan has and the eligibility requirements needed for a service member to get approved.

A VA loan guaranty has many possible uses, among which are:

• To buy or build a home.
• To buy a residential condominium.
• To buy a residential cooperative housing unit (co-op).
• To repair, alter, or improve a home.
• To Refinance an existing home loan.
• To buy a manufactured home with or without a lot.
• To buy and improve a manufactured home lot.
• To install a solar heating or cooling system or other weatherization improvements.
• To buy a home and install energy-efficient improvements.

To be eligible for a VA loan guaranty, a service member must meet the following five criteria:

• They must meet the conditions of service requirements.
• They must have a good credit rating.
• They must have a sufficient income.
• They must have a valid Certificate of Eligibility (COE).
• They must agree to live in the home.

There are two ways to obtain a Certificate of Eligibility.  The first is to complete VA Form 26-1880, also known as the "Request for a Certificate of Eligibility for VA Home Loan", and mail it to the VA Loan Eligibility Center in Winston-Salem NC.  Your other option is to obtain one from your lender.  I recommend the latter, as it is much quicker!  Most lenders have access to the VA's "WebLGY" system, which is an internet based application that can establish eligibility and issue a COE in seconds.

Well, that's it for now!  Tune in for my next blog, which will discuss VA appraisals and closing costs.  It will be the last blog in my series about the VA loan guaranty, so don't forget to check it out. 

For more information on buying a home in the Jacksonville area, contact me.  I am always available to my customers and clients.  For more information about VA loans, other loan options, or to get pre-approved, click here. 

Source:  Federal Benefits for Veterans and Dependents 2008 Edition Pamphlet