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    kdemarco@sunstreetmortgage.com

  • VA Loans

  • VA Eligibility Requirements

    To obtain a COE, you must have been discharged under conditions other than dishonorable and meet the service requirements below:

  • StatusQualifying Wartime & Peacetime PeriodsQualifying Active Duty DatesMinimum Active Duty Service Requirement
    Veteran WWII 9/16/1940 - 7/25/1947 90 total days
    Post-WWII 7/26/1947 - 6/26/1950 181 continuous days
    Korean War 6/27/1950 - 1/31/1955 90 total days
    Post-Korean War 2/1/1955 - 8/4/1964 181 continuous days
    Vietnam War 8/5/1964 - 5/7/1975 *For Veterans who served in the Republic of Vietnam the beginning date is 2/28/1961 90 total days
    Post-Vietnam War 5/8/1975 - 9/7/1980 *The ending date for officers is 10/16/1981 181 continuous days
    24-month rule 9/8/1980 - 8/1/1990 *The beginning date for officers is 10/17/1981
    • 24 continuous months OR
    • The full period (at least 181 days) for which you were called or ordered to active duty
    Gulf War 8/2/1990 - Present
    • 24 continuous months OR
    • The full period (at least 90 days) for which you were called or ordered to active duty
    Currently On Active DutyAny Any 90 continuous days
    National Guard & Reserve MemberGulf War8/2/1990 - Present90 days of active service
    Six years of service in the Selected Reserve or National Guard AND Were discharged honorably OR Were placed on the retired list OR Were transferred to the Standby Reserve or an element of the Ready Reserve other than the Selected Reserve after service characterized as honorable OR Continue to serve in the Selected Reserve

  • *If you do not meet the minimum service requirements, you may still be eligible if you were discharged due to (1) hardship, (2) the convenience of the government, (3) reduction-in-force, (4) certain medical conditions, or (5) a service-connected disability.

  • Spouses

    The spouse of a Veteran can also apply for home loan eligibility under one of the following conditions:

    • Unremarried spouse of a Veteran who died while in service or from a service connected disability, or
    • Spouse of a Servicemember missing in action or a prisoner of war
    • Surviving spouse who remarries on or after attaining age 57, and on or after December 16, 2003
      (Note: a surviving spouse who remarried before December 16, 2003, and on or after attaining age 57, must have applied no later than December 15, 2004, to establish home loan eligibility. VA must deny applications from surviving spouses who remarried before December 6, 2003 that are received after December 15, 2004.)
    • Surviving Spouses of certain totally disabled veterans whose disability may not have been the cause of death 

  • VA Funding Fee

    Generally, all Veterans using the VA Home Loan Guaranty benefit must pay a funding fee.  The funding fee is a percentage of the loan amount which varies based on the type of loan (purchase or refinance) and your military category, if you are a first-time user or subsequent loan user, and whether you make a down payment.  You have the option at closing to pay the funding fee in cash or finance the VA funding fee, but the funding fee must be paid at closing time.

    You do not have to pay the fee if you are a:

    • Veteran receiving VA compensation for a service-connected disability, OR
    • Veteran who would be entitled to receive compensation for a service-connected disability if you did not receive retirement or active duty pay, OR
    • Surviving spouse of a Veteran who died in the service or from a service-connected disability

    The funding fee for a subsequent user of a VA loan that does not make a down payment is slightly higher.

  • Purchase or Refinance

     

    A VA home loan my be used to either purchase or refinance a home. 

    Purchase

    • The home being purchased must be the Veterans primary residence
    • Can be used to purchase a site built home, manufactured home, townhome, condominium in a VA-approved project or build a home

    Refinance

    • A Veteran may refinance their primary residence up to 100% of its appraised value
    • Types of refinances available - Rate/Term, Cash-Out and IRRRL
     

  • VA Home Loan Advantages

     

    The guarantee VA provides to lenders allows them to provide you with more favorable terms, including:

    • No down payment as long as the sales price does not exceed the appraised value.
    • No private mortgage insurance premium requirement.
    • VA rules limit the amount you can be charged for closing costs.
    • Closing costs may be paid by the seller.
    • The lender can't charge you a penalty fee if you pay the loan off early.
    • VA may be able to provide you some assistance if you run into difficulty making payments.

    You should also know that:

    • You don't have to be a first-time homebuyer.
    • You can reuse the benefit.
    • VA-backed loans are assumable, as long as the person assuming the loan qualifies.

    More information is available at http://www.benefits.va.gov/homeloans/.