Frequently Asked Questions about VA Loans
Issues associated with applying for the VA mortgage loan program and reuse or renewal of eligibility.
Q: How do I apply for a VA backed mortgage?
A: You may work with any VA authorized lender to buy a home. However, for participants in the MHAF program, Military Housing Assistance Fund further pre-screens the approved lenders to ensure you are working with lenders who are committed to helping military families become homeowners.
Q: How do I get a Certificate of Eligibility?
A: Complete a VA Form 26-1880, Request for a Certificate of Eligibility: You can apply i for a Certificate of Eligibility by submitting a completed VA Form 26-1880, Request Meant for A Certificate of Eligibility Designed for House Loan Benefits, towards the Winston-Salem Eligibility Center, along with proof of military support. In some instances it might be feasible meant for VA to establish eligibility without your evidence of service. However, to avoid any possible delays, it is greatest to supply such evidence.
Q: Can my loan provider get my Certificate of Eligibility for me?
A: Yes, it’s called Internet LGY. Most lenders have access to the Internet LGY system. This Web based application can establish eligibility as well as issue an on the internet Certificate of Eligibility in a matter of seconds. Not all instances can be processed through Internet LGY – only those just for which VA has sufficient data in our records.
Q: What is acceptable evidence of military service?
A: If you are still serving on regular active duty, or in the Reserves or National Guard, you must include an original declaration of service signed by, and / or by direction of, the adjutant, personnel officer, or commander of your unit or greater headquarters which identifies you as well as your social security number, and offers your date of entry on your present active duty period as well as the duration of any time lost. If you are in the Reserves or Guard, this paperwork must show six years accrued service time.
If you were discharged from normal active duty following January 1, 1950, a copy of DD Form 214, Certificate of Release and Discharge From Energetic Duty ought to be integrated with your VA Form 26-1880. If you were discharged following October 1, 1979, DD Form 214 copy 4 should be included. Do NOT send original.
Q: How can I obtain evidence of military service?
A: Most common Form 180, Request Pertaining to Military Records, is used to utilize designed for evidence of military service regardless of regardless of whether you served on normal energetic duty or within the chosen reserves. This request form isn’t processed by VA. Rather, Standard Form 180 is completed as well as mailed to the appropriate custodian of military support records. Instructions are provided about the reverse from the form to assist in determining the correct forwarding address.
Q: What documents will the lender want to see (so I can start getting ready)?
A:If you already have your Certificate of Eligibility from VA, that will speed up the process. Otherwise, it will need to be obtained ASAP. Other documents commonly required are a DD214 (if applicable), your transfer orders (if applicable), and TWO most recent of each of the following:
-Leave and Earning Statements (LES)
-Other paystubs (2nd job, spouse’s job)
-Statements for all bank accounts and/ or investment accounts
Additionally, the lender will need copies of everything related to your purchase transaction; the contract, the appraisal, any addendums to either, the deposit check (canceled) given to escrow or the seller, etc. In addition, the lender will send you a package of forms called “disclosures” that will spell out the terms and conditions of the proposed financing. It is imperative that you review, sign, and fax these forms back to the lender quickly, as the lender, by law, cannot order the appraisal and otherwise move forward on your loan for three full days after they have received your signed disclosures back. With an escrow clock ticking, this is critical. Nothing happens until you get the disclosures back in, so if there is a problem, speak to your lender and get it resolved right away.
IMPORTANT: Until the day your VA loan closes, you should fax any new statements, LES’s, paystubs, etc. to your lender, as the lender will require the two MOST RECENT (at the time of close) to be included in the final package. And of course, while your purchase transaction is under way, DO NOT take on any new debt obligations. This can kill your purchase by changing your qualifying debt to income ratios.
Q: If I have already had a VA mortgage, am I still eligible to use a VA loan?
A: Your eligibility is renewable. In most cases, if you’ve paid off your preceding VA loan and disposed of the property, you are able to have your used eligibility restored. To acquire restoration of eligibility, the veteran should send a completed VA Form 26-1880 to our Winston-Salem Eligibility Center. To prevent delays in processing, it can also be advisable to include evidence that the prior loan continues to be paid in full as well as, if applicable, the house disposed of. This evidence can be in the form of a paid-in-full declaration in the former loan provider, and also a copy of the HUD-1 settlement statement completed in connection having a sale of the house and also refinance from the prior bank loan.
Q: I am disabled. I have heard that there are some special savings for disabled veterans. Is that the case?
A: If you have a qualifying disability resulting from your time in service, you MAY be eligible to have your VA Funding Fee waived. The funding fee can be up to 3.15%, which is added to your loan balance, so this can really be a substantial savings, although it is small compensation for the sacrifice you have made for your country. Your VA medical evaluation and finding of disability should be included with your other documents (LES, paystubs, W-2′s etc.) when you send them to your lender.