The VA Home Loan requires 2 forms. The DD-214 and the VA Certificate of eligibility. Simple enough right? Wrong. These 2 forms have caused much confusion for Veterans when applying for the VA Home Loan.
First we will take a look at the DD-214 which we all know as our discharge paperwork. The reason why the DD-214 is so important on the VA Home Loan is because it tells the lender what type of discharge you had from the military which will determine if you are eligible for your VA Home Loan Benefits.
As many Veterans know this form is incredibly important for more reasons than just using your VA Home Loan. So if for some reason you have misplaced, or lost it, thats okay. This form can be ordered from the Veterans Archives Website at http://www.archives.gov/veterans/military-service-records/
Now please understand that you MUST have this form prior to applying for your VA Home Loan. I say this because if for some reason it’s lost or misplaced it can delay your home buying experience causing stress for you and everybody involved on the transaction.
The VA Certificate of Eligibility causes much confusion for Veterans when attempting to use their VA Home Loan benefits. Furthermore this form is designed to tell both lender and the Veteran that the Veteran has sufficient entitlement/guarantee to use the VA Home Loan. Veterans please understand that just because we may have a VA COE does not mean that we automatically qualify for the VA Home Loan. A Veteran can have a VA COE and be eligible for the VA Home Loan and still not have the minimum credit score that the lender requires which is 600. To apply for your Certificate of Eligibility you may do so by contacting me directly at https://www.valoansforvets.com/contact-me/
Here in Arizona there are over 500,000 Veterans living among us right now. Kind of a big deal right? The reason why I say this is because I know how many Veterans that are out there that don’t know the full description of their VA Home Loan benefit and how it works. I am also reminded of how many of our nations finest men and women that are still serving and deployed overseas that will eventually exit from their branch of service and join the ranks of the civilian sector. Keep in mind that this is a number that I believe will continue to increase due to the ending of military operations in places like Afghanistan. Which leads me to my next question…Are Veterans prepared to purchase a home and use their VA Home Loan Benefits when returning from the military or at any other point in their lives?
VA Home Loans are so unique. In reality there is really no other type of home loan out there that exist that allows a Veteran to purchase a home up to $417,000 with no down payment (and in some cases higher). Furthermore, Veterans must also understand that in order to use your VA Home Loan Benefit you do not need to have a 800 Fico score as much of the media may lead you to believe. With VA Home Loans, most lenders require a 620 credit score allowing Veterans with less than perfect credit to purchase homes. Lastly, the VA Home Loan allows Veterans to purchase a home with limited closing cost, saving the Veteran in some cases as much as $1,500 in closing cost.
So why do VA Home Loans matter? Simple, because they are the bridge between Veterans and home ownership! In closing, I am often times asked the question… “Jimmy is there ever a time when a Veteran should not consider a VA Home Loan?” No. I say this because in most circumstances that I see on a daily basis the VA Home Loan is just as competitive as a Conventional home loan and certainly more competitive than a FHA Home Loan.
Thank you and may God bless you for your service to our great country.