The first question, and the most difficult to answer, is “Am I eligible for a VA loan?” and it is difficult for two reasons. The first is, “What did you do in the military?” and the second is “When did you serve?” The second question is the most troubling because some people only served a very short amount of time and are still eligible for VA loans. Sadly, this article is not going to go through all the time frames and dates that may make you eligible, but you can send in a request to find out if you were eligible.
A Certificate of Eligibility (COE)
If you are dealing with a good and/or experienced VA loans company, they can use some photocopies of your paperwork to request your COE, but you can speed up the process by doing it yourself.
Whether you were an active military person during a war, or perhaps part of the national guard and so forth, you should have discharge papers. Using your discharge or separation papers (DD214) you can put in for a COE, which you can then use to get your VA loans. Obviously, if you cannot put your hands on your discharge papers, you will have to send away for them and/or find them online, which will also take some time.
Choosing Your Loan Type
Once you are eligible, then you are pretty-much allowed the same VA loans as other people in your local area. It is slightly tricky because different states have different rules, and different VA loan companies (private lending companies) have their own rules and requirements. Nevertheless, there are several types of loans, and the only difference between what you get and other active members is it perhaps a few fees may differ, and the time it takes to go from right now to getting your loan may differ.
They are going to throw a bunch of options at you, but they are almost all related to the type of house you are looking to get. They may also make reference to how many dependents will be living in the house. The companies have rules on buying condominiums, houses, units in a multi-complex and so forth. The biggest difference is those VA loans just for the cost of the house, and those that cover the house and energy efficiency improvements. You may be able to get a VA loan that gives you a little extra to fix up the house.
Can You Afford the Loan?
Getting started can be a little long winded, but there are benefits like not having to pay private mortgage insurance (in some cases) or being able to buy from certain VA approved locations that also contains several veterans. Still, this is a loan and will cost you a lot of money over the long run. Check using a VA mortgage calculator to see if you can afford the loan over the long term.
This is not the sort of loan you want to default on, firstly because you will lose your house, and secondly because you can get your entitlement back once you have paid off the loan. There are fee structures that were set both to discourage and enable people to buy houses again using their VA loans. Ask your VA loan company about their tiered fee structure. Nevertheless, if you paid off your previous loan, then there are several requirements and stipulations, but it is quite possible to apply for a brand new loan with very similar terms and conditions. There are several occasions where veterans need to buy a house again, such as if they sold their last one and want to buy a bigger house, or if they lost their first house in a divorce and now need a new one.
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