Who qualifies for a VA Loan in California?
The debt of gratitude that a grateful nation owes to those who have served in the Armed Forces is something that we can never repay. However, there are programs such as the special VA home rebate program for those interested in buying a home and having served. To qualify for a hero loan program like this, one must meet specific eligibility requirements, and it is common for questions to come up about what those requirements are and what one must due to qualify. We want to provide you with helpful information for some of the most frequently asked questions about this program.
Why Should A Veteran Consider A VA Loan?
People sometimes want to know what makes a VA loan so special in the first place. They wonder why they ought to consider this over a traditional loan that anyone off the street could walk in and get. The answer breaks down into a couple of categories:
- No Downpayment – Traditional home loans typically require borrowers to put down at least three percent of the home’s value before they qualify to receive the loan. This requirement is not part of the hero homebuyer program. Those who are eligible can receive their home loan with no money down. That makes it a lot easier for our military heroes to get into the homes that they need.
- No Monthly Mortgage Insurance Payment – Traditional loans require the borrower to pay monthly mortgage insurance protection on top of their mortgage if they cannot put down at least twenty percent of the value of the home when they make an offer. Since most people cannot put down twenty percent when they purchase their home, it is generally necessary to pay this extra money. Military heroes using the homebuyer rebate program don’t have to worry about this.
Can You Get A VA Loan From Any Lender?
Not every local lender offers VA loans. Those who want to get involved with the real estate rebate program for military veterans should look for lenders specializing in VA loans. Most lenders that want to attract as much business as possible know that they need to offer these types of loans, but no laws require them to do so. It would be better to direct your attention toward lenders who are willing and able to work with veterans. They have clearly shown their respect and admiration for our military heroes’ sacrifices.
What Is The Maximum Amount That One Can Borrow On A VA Loan?
There is no legal maximum for how much a lender can provide a veteran on their home loan. When considering how much money they will lend to a veteran, lenders will generally consider the same factors for any other application. That is to say that they will look at their income, credit score, and history of borrowing in the past (often determined by their credit score).
Does The Veteran’s Home Loan Benefit Expire?
Military.com provides an excellent answer to this question:
No. Home loan entitlement is generally good until used if a person is on active duty. Once discharged or released from active duty before using an entitlement, lenders must make a new determination of the hero’s eligibility. This new determination is based on the length of service, and the type of discharge received.
As long as one is still actively serving, their VA home loan benefits remain open and active. When they end their time in the service, the amount of time they have left to claim their home rebate benefits depends upon their length of service and other factors.
Can You Use A VA Loan For A Second Home?
You cannot use a VA loan to obtain a second home unless you use both houses for your occupancy. The only way that this works is if your spouse explicitly uses the second home. Other family members do not qualify for this provision, and it is rare to see someone use a VA loan to obtain a second home for their spouse, but there are ways that it can be done. The military intends to make these programs as helpful as possible for the brave service members who rely on them. That is why they want to keep the VA loan program as fair and equitable to everyone as possible.
Which Services Do Not Qualify For A VA Loan?
At this time, the VA loan program is not open to those who exclusively serve in the Reserves or the National Guard. Their service is still highly valued and appreciated, but they cannot get a hero home loan based solely on their service in those programs.