When seeking a VA loan the first step is always determining eligibility. The second is completing the proper steps to get the Certificate of Eligibility and the third determining which lender to use. Eligibility for regular active duty military can be completed by having a statement of service completed that includes your social security number and the duration of your service that is signed by a superior. If you’re currently discharged you are required to provide documentation that proves that you’ve had at least six years of honorable service, this form is called a Standard Form 180. The spouse of a veteran can also be eligible for a VA loan if their spouse was deceased while on active duty or do to a service related disability. If this is the case the spouse must contact the Atlanta Eligibility Center to get the Certificate of Eligibility. However the children of a living or deceased veteran would not be considered eligible for a VA loan. If you’ve had a VA loan in the past you might still be eligible for a future VA loan depending on whether or not you sold the previous property and it was paid off free and clear or if you had a VA loan that was paid in full. In that case you would only be eligible for another VA loan on a one time basis.
Every VA loan requires a Certificate of Eligibility and this can be done in two ways. First is that you provide proof of adequate service and complete a VA Form 26-1880. The second is that your lender access what is called the Web LGY system which you’ll find that most lenders have access to. However if you’re wish is to have the process move as quickly as possible it might be best that you have the Certificate of Eligibility in hand when you visit your lender to complete an application.
There are wide arrays of lenders that provide VA loans and it’s very likely that your local bank offers some type of VA loan. Just like any other loan, rate shopping is very important in making a determination on which lender is right for you. Closing costs will also be a factor however it is important to know that all lenders are required to charge you what is called a VA Funding Fee. This fee is a small percentage of your loan amount and is usually 1.25 to 1.5 percent of the total loan amount depending on your eligibility and your type of service. The loan officer will be able to determine the exact amount on your HUD statement and this fee can be financed into your VA loan. It is important to note that just because you’re a veteran that doesn’t mean you are guaranteed approval for a VA loan and the criteria for approval will vary from lender to lender. Another important thing to remember is that your VA loan can be used for a purchase, a construction loan and also to refinance of your current loan. Remember that although this program has certain eligibility requirements rates and closing costs will still vary from one lender to another and you must comparison shop to find a great deal.