There are some real advantages to being a U.S. military veteran.
Depending on length of service, and where and when somebody served,
a veteran may be entitled to health benefits, education benefits
and advantages in seeking employment. Almost every veteran who served
just one full term is entitled to veteran's financing benefits on
the purchase of a home. Veterans who served during certain specific
wartime periods need even less time in active duty service.
main type of financing for veterans is backed by the Department
of Veterans' Affairs, a cabinet level department in the federal
government. The loans are referred to as VA loans from the Department's
prior name as a government agency, the Veterans' Administration
(On rare occasion they may be referred to as DVA loans for the current
name of the Department). The money to originate these loans comes
from lenders (banks, savings & loans, mortgage companies, etc.).
The money is not loaned or funded by the Department of Veterans'
Affairs. Instead, part of each loan is GUARANTEED by the Department
of Veterans' Affairs. VA financing allows a veteran to get into
a home with less cash needed at settlement or closing, and at a
lower monthly payment.
you can be approved for VA financing, you will need to provide proof
of service and get a Certificate of Eligibility. A veteran can apply
for their certificate online (click
here), by mail or through their lender (click
here for the documents you will need to provide). The main document
needed in most cases is the DD214 (a copy, not the original). Current
active-duty service members may also be eligible, but will need
to provide additional documentation.
benefit may be used more than once, so if you had a VA loan previously,
you may still be eligible for a VA loan now. All previous VA loans
must be paid off. You may own one additional home that was purchased
with a VA loan, as long as that loan has been paid off (This can
only be done once). If you had a VA loan on a previous home, and
that loan was assumed by anyone other than another qualified veteran,
that may prevent you from reusing your benefit until the original
loan is paid off, because that loan is still tied to your Eligibility
Certificate. If the previous property was foreclosed on or a portion
of the debt was forgiven (either to you, or a buyer that assumed
the loan), that may also prevent you from reusing your benefit,
because the original loan was not paid off. A veteran may be eligible
for a partial benefit in some circumstances, if they did not use
their entire eligibilty amount on their previous purchase, even
if the original loan has not been paid off yet. To determine if
they are in this category, they should speak with a qualified loan
©2012 Douglas R. Barry