This program is for a special kind of borrower – one that has served our country within a division of the armed forces. The U.S. Dept. of Veteran Affairs was authorized many years ago to insure loans to a variety of men and women that have served in any kind of capacity. That’s the part that most people aren’t aware of!
Do you have to be a Vet? NO!
Similar to the first program we discussed, this loan is protected from loss to the lender – except that this time you are covered all the way up to 100%! And no, it is not only available to Veterans. Almost anyone who has served in the Army, Navy, Air Force, Marines or Coast Guard is eligible – but so are borrowers who were reservists, married to or even widowed from someone who was in an eligible class. And you don’t have to be currently active in the service in order to take advantage of the benefits! I just helped a 70-year old man get into a home who hadn’t been in the service for almost 50 years!
What kinds of restrictions are there?
First, we have to obtain a “Certificate of Eligibility,” which I can assist you with. The benefits that are available vary depending upon a few factors such as length of service, prior usage or outstanding entitlements, but the great thing is – these benefits can be renewed and used over and over again!
There are no restrictions as to the location of your property, but there are loan limits on what the insurance will cover, so we won’t be purchasing any $2 million homes. Ouch – if that cramps your budget, then we’ll have to look at something else ;-). In most cases VA covers up to $417,000.
VA Loan Limits
This is a great program for starter families who have no cash reserves and a short employment history. Credit bumps are okay, as they are for all these programs, but there is a formula for fitting into the program. The closing process doesn’t take longer than 30-45 days, and when we structure the transaction, the seller can pay ALL of the closing costs and escrow reserves.
