01
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How do I apply for a VA guaranteed
loan?
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You can apply for a VA loan with
any mortgage lender that participates in the VA home loan
program. At some point, you will need to get a Certificate
of Eligibility from VA to prove to the lender that you
are eligible for a VA loan. |
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02
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How do I get a Certificate of Eligibility?
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Complete an 1880: You can apply for a Certificate
of Eligibility by submitting a completed VA Form 26-1880,
Request For
A Certificate of Eligibility For Home Loan Benefits, to
one
of the VA
Eligibility Centers, along with proof of military service. In some
cases it may be possible for VA to establish eligibility
without
your proof of service. However, to avoid any possible
delays, it's
best to provide such evidence.
ACE (automated certificate of eligibility): It's also
possible to obtain a Certificate of Eligibility from your
lender. Most lenders have access to the ACE (automated
certificate of eligibility) system. This Internet based
application can establish eligibility and issue an online
Certificate of Eligibility in a matter of seconds. Not
all cases can be processed through ACE - only those for
which VA has sufficient data in our records. However,
veterans are encouraged to ask their lenders about this
method of obtaining a certificate. |
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03
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What is acceptable proof of military
service?
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If you are still serving on regular active duty, you
must include an original statement of service signed by,
or by direction of, the adjutant, personnel officer, or
commander of your unit or higher headquarters which identifies
you and your social security number, and provides your
date of entry on your current active duty period and the
duration of any time lost.
If you were discharged from regular active duty after
January 1, 1950, a copy of DD Form 214, Certificate of
Release or Discharge From Active Duty should be included
with your VA Form 26-1880. If you were discharged after
October 1, 1979, DD Form 214 copy 4 should be included.
A PHOTOCOPY OF DD214 WILL SUFFICE.....DO NOT SUBMIT AN
ORIGINAL DOCUMENT.
If you are still serving on regular active duty, you
must include an original statement of service signed by,
or by direction of, the adjutant, personnel officer, or
commander of your unit or higher headquarters which shows
your date of entry on your current active duty period
and the duration of any time lost.
If you were discharged from the Selected Reserves or
the National Guard, you must include copies of adequate
documentation of at least 6 years of honorable service.
If you were discharged from the Army or Air Force National
Guard, you may submit NGB Form 22, Report of Separation
and Record of Service, or NGB Form 23, Retirement Points
Accounting, or it’s equivalent. If you were discharged
from the Selected Reserve, you may submit a copy of your
latest annual points statement and evidence of honorable
service. Unfortunately, there is no single form used by
the Reserves or National Guard similar to the DD Form
214. It is your responsibility to furnish adequate documentation
of at least 6 years of honorable service.
If you are still serving in the Selected Reserves or
the National Guard, you must include an original statement
of service signed by, or by the direction of, the adjutant,
personnel officer, or commander of your unit or higher
headquarters showing the length of time that you have
been a member of the Selected Reserves. Again, at least
6 years of honorable service must be documented. |
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04 |
How can I obtain proof of military
service? |
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Standard Form 180, Request Pertaining to Military Records,
is used to apply for proof of military service regardless
of whether you served on regular active duty or in the selected
reserves. This request form is NOT processed by VA. Rather,
Standard Form 180 is completed and mailed to the appropriate
custodian of military service records. Instructions are
provided on the reverse of the form to assist in determining
the correct forwarding address. |
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05 |
I have already obtained one VA loan.
Can I get another one? |
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Yes, your eligibility is reusable depending on the circumstances.
Normally, if you have paid off your prior VA loan and disposed
of the property, you can have your used eligibility restored
for additional use. Also, on a one-time only basis, you
may have your eligibility restored if your prior VA loan
has been paid in full but you still own the property. In
either case, to obtain restoration of eligibility, the veteran
must send VA a completed VA Form 26-1880 to one of our VA
Eligibility Center. To prevent delays in processing, it
is also advisable to include evidence that the prior loan
has been paid in full and, if applicable, the property disposed
of. This evidence can be in the form of a paid-in-full statement
from the former lender, or a copy of the HUD-1 settlement
statement completed in connection with a sale of the property
or refinance of the prior loan. |
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06 |
I sold the property I obtained with
my prior VA loan on an assumption. Can I get my eligibility
restored to use for a new loan? |
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In this case the veteran’s eligibility can be
restored only if the qualified assumer is also an eligible
veteran
who is willing to substitute his or her available eligibility
for that of the original veteran. Otherwise, the original
veteran cannot have eligibility restored until the assumer
has paid off the VA loan. |
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07 |
My prior VA loan
was assumed, the assumer defaulted on the loan, and
VA paid a claim to
the lender. VA said it wasn’t my fault and waived
the debt. Now I need a new VA loan but I am told that
my used eligibility can not be restored. Why? |
or |
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08 |
My prior loan was
foreclosed on, or I gave a deed in lieu of foreclosure,
or the VA paid a compromise (partial) claim. Although
I was released from liability on the loan and/or the debt
was waived, I am told that I cannot have my used eligibility
restored. Why? |
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In either case, although the veteran’s debt was
waived by VA, the Government still suffered a loss on the
loan. The law does not permit the used portion of the veteran’s
eligibility to be restored until the loss has been repaid
in full. |
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09 |
Only a portion
of my eligibility is available at this time because
my prior loan has not been
paid in full even though I don’t own the property
anymore. Can I still obtain a VA guaranteed home loan? |
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Yes, depending on the circumstances. If a veteran has
already used a portion of his or her eligibility and the
used portion cannot yet be restored, any partial remaining
eligibility would be available for use. The veteran would
have to discuss with a lender whether the remaining balance
would be sufficient for the loan amount sought and whether
any down payment would be required. |
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10 |
Is the surviving spouse of a deceased
veteran eligible for the home loan benefit? |
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The unmarried surviving spouse of a veteran who died
on active duty or as the result of a service-connected
disability is eligible for the home loan benefit. If you wish to make
application for the home loan benefit as a surviving spouse,
contact one of our VA
Eligibility Centers. In addition,
a surviving spouse who obtained a VA home loan with the
veteran prior to his or her death (regardless of the cause
of death), may obtain a VA guaranteed interest rate reduction
refinance loan. For more information, contact one of our
VA Eligibility
Centers. |
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11 |
Are the children of a living or deceased veteran
eligible for the home loan benefit? |
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No, the children of an eligible veteran are not eligible
for the home loan benefit. |
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12 |
Can I build a new home with a VA loan? Can I be
my owncontractor? |
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Although they are allowed by law, most lenders do not
make construction loans for VA loans, largely due to risks
and costs of construction disputes. You can be your own
contractor, but you will have to find your own source for
construction financing. Once the home is complete, you could
then get a VA loan to refinance the construction loan. Funds
from the VA loan could also be used to pay off the balance
of the loan on the land, provided that the total VA mortgage
amount does not exceed the VA reasonable (appraised) value
of the property. The house would be considered an existing
home once construction was complete. It would have to meet
VA Minimum Property Standards that apply to existing homes.
These can be found in chapter 13 of the lender's handbook. |
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13 |
Will the appraiser make sure everything
is o.k. with the home I am buying? |
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No. The appraiser is not an inspector. VA does not guarantee
the condition of the house you are buying. VA guarantees
only the loan. If you have any doubts about the condition
of the house which you are buying, it is in your best interest
to seek expert advice before you legally commit yourself
in a purchase agreement. Particularly with a previously
occupied house, most sellers and their real estate agents
are willing to permit you, at your expense, to arrange for
an inspection by a qualified residential inspection service.
Also, most sellers and agents are willing to negotiate with
you concerning what repairs are to be include in the purchase
agreement. Steps of this kind can prevent many later problems,
disagreements, and major disappointments. |
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14 |
The reasonable value came in lower
than the amount I agreed to pay for the house. Is there
any way I can still purchase it? |
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There are basically three options:
a |
Renegotiate the purchase with a lower selling
price.
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b |
Pay the difference between the selling price
and the reasonable value yourself, since the loan
cannot exceed the reasonable value plus the funding
fee.
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c
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If you believe there is an error in the appraisal,
you can ask the local VA office to review it. Be
sure to specifically identify where you believe
the appraisal is in error and why.
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