VA LOANS IN A NUTSHELL

WHAT ARE VA LOANS?

A VA loan is a mortgage loan based in the United States that is guaranteed by the U.S Department of
Veterans Affairs (VA). A VA loan may be issued by qualifies lenders. The foremost purpose of VA loan is
to offer long-term financing to eligible American veterans or their spouses. (Provided they are surviving
and do not remarry). VA mortgage loans offer a great program for veterans who are serving in the U.S.
Army, U.S. Air Force, U.S. Navy, U.S. Marine Corps, and United States Coast Guards. The eligibility
benefits from one branch of service to another. They are greatly determined by the type of service, the
longevity of service, and the character of service.

ELIIGIBILITY AND VA CERTIFICATE

VA loans are especially designed for veterans as a benefit for their service. The Federal Government
initiated a program for people who served in the military to be eligible for a home loan. Following is the
eligibility criteria for VA loans:
Down payments are not required for those who qualify for such loans. VA loans offer 100%
financing and Veterans who qualify for them can buy a home with no down payment.
In order to be eligible for a VA loan, the home buyer needs to be discharged honorably from the
United States Armed Services and have a certificate eligibility. The borrower must file a VA Form
26-1880, Request for Determination of Eligibility and Available Loan Guaranty Entitlement to
receive a certificate of eligibility which is issued by U.S Department of Veteran Affairs.
This program is inclusive of the spouses of veterans and service members who have died while
on duty or have died due to a disability as a result of serving in the armed services.

LENDING GUIDELINES FOR VA LOAN MORTGAGE

The guidelines for qualifying for VA loan are similar to other tradition loans in the aspect that the
veteran must have a minimum credit score and optimal debt to income ratio requirements.
The lenders are no overlay and as long as you get an approval from the Automated Underwriting
System, you will close on your V.A Loan.
The lenders also provide manual underwrites on VA mortgage loans for those who fail to get an
automated approval.
 VA loan programs have one of the lowest mortgage rates in contrast to many other mortgage
loan programs.
Zero down payment and no mortgage insurance premium are two of the greatest benefits and a
strong reason for veterans to opt for VA loans if they have an eligibility certificate.

SERVICE PERIODS AND ELIGIBILITY

Following is the eligibility for wartime periods of services:

1. Vietnam Era: This refers to the wartime periods between 08-05-1964 through 05-07-1975
2. Persian Gulf, Afghanistan and Iraq periods of service between 08-02-1990 till present
3. Veteran Administration eligibility requires that the applicant must complete 90 days or more on
active duty service.
The eligibility of peacetime periods of services is as follows:
1. The period of peacetime service was between 05-08-1975 and 08-01-1990
2. The Veterans are required to complete at least 181 days of continuous on active duty military
service.
3. As far as the military reserve members and members of National Guard are concerned, they must
have completed at least six years as members of the Selected Reserves.
4. Spouses of a missing in action veteran or a prisoner of war is also eligible if they are missing in
action or a prisoner of war for at least 90 days.

NON-CITIZENS LOANS
The United States offers mortgage loan programs for non-residents. The most common mortgage
programs cater to non-U.S. residents working for a U.S company or subsidiary of a U>S. Company on a
temporary work visa.
There are a number of loan programs for non-citizens who do not fall under the category of permanent
residents. All Foreign National loans are portfolio loans where the bank manages the loan on their own
and books are not sold on the secondary market. Therefore, such type of loans are difficult to obtain. All
portfolio loans are usually 30 year adjustable rate mortgages offered via 3/1 ARM, 5/1 ARM, and 7/1 ARM.