by Brian Cody

Created on: January 04, 2010   Last Updated: January 06, 2010

The following is a list of benefits to a prospective home buyer to apply for a VA home loan;

 -There is no down payment required unless the (Certificate of reasonable value of Property)

i.e. "the property appraisal," is lower than the purchase sale price of your property.

 -There is no mortgage insurance premiums

 -You have the right to pre-pay your mortgage with out limit

 - For construction loans,  VA home loans require that the builder obtain cooperation for the lender.  A VA home inspection is required.

 -Closing costs are comparable & might be lower with other mortgage loan financing

 -You have the ability to finance the VA Funding fee.

 What are the VA county loan limits?  Go to the web site http://www.Homeloans.vagov/docs/2010_County_loan_lim its.pdf. Call the VA at  1-(800-827-1000)

 In Massachusetts for example the VA county home loan limits are a max guaranty loan amount of $475,000, in Dukes county $600,250, on the Nantucket island $1,094,625.

 What is guaranteed by the VA home loan program?  The guarantee is to the private lender of your mortgage application. The purpose of the guarantee to protect the lender against losses if the borrower defaults and fails to payoff the mortgage loan amount.  The benefit to the borrower of the guarantee is that the private lender can finance 100% of the loan amount without having to pay mortgage insurance premiums.

What is the process of obtaining a Certificate of Eligibility and a VA home loan?

First,  you need to complete a VA form 26-1880, known as a request for a certificate of eligibility for home loan Benefits.  A discharged veteran needs to submit a copy of his DD Form 214.

For those veterans still on active duty with the military or in the military reserves, and national guard, you need a copy of your enlistment contract listing your date of entry in service, include your full name and social security number.

 Where to I apply for the certificate of eligibility and the VA home loan?

 You can apply on line at  http://www.Homeloans.va.gov.  Stop into the Winston-Salem NC eligibility center or any one of the 9 regional loan centers. For contract information online  go to http://www.Veterans Adminstration.gov 

You can also ask any private lender who participates in the VA home loan program to do a WEB LGY Certificate of eligibility.

 What is the processing steps of a VA home loan that

• 1
• 2
• Next Page >>