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The Reference Guide for VA Home Loans

The Reference Guide For VA Home Loans And Lending Guidelines

This BLOG On The Reference Guide For VA Home Loans And Lending Guidelines Was UPDATED On December 30th, 2018

In 1944 VA started a VA mortgage loan program to aid military veterans coming back from war to reintegrate into their societies. Now, after 70 years, the VA loan guarantee program is still a significant portion of the VA service package and presented to military employees. 

  • VA loans offer a 100% financing option with no mortgage insurance
  • This is one of the most economical ways to buy a home with little or no payment
  • Because the government partially guarantees VA Home Loans against default/foreclosure, lenders are generally willing to offer them at lower interest rates than other home loans

So, who is authorized to obtain a VA loan guarantee program?

  • Not every person, but more people than what most people (including qualified veterans) believe

Here is an overview of the criteria for getting approval for a VA mortgage. 

The Reference Guide For VA Home Loans And Lending Guidelines And Eligibility

Most veterans must pass the active minimum active service qualification in order to qualify for a VA loan, although there are some exceptions to this requirement. 

The least duration of service depends on the date of the service. 

Currently Active Service Veterans from August 2, 1990: 

Veterans who have been serving from August 2, 1990 to the present day, must have remain in service for 24 months continuously or 90 days during which during which they were ordered to active duty or being called for their services.  

Veterans who served from September 8, 1980 to August 1, 1990 

Veterans employed from September 8, 1980 to August 1, 1990 must have remain in continuous service for 24 consecutive months or minimum 181 days on active duty. The starting date for officers is October 17, 1981 for this requirement.  

Veterans who remained in service from May 8, 1975 to September 7, 1980 

Veterans employed from May 8, 1975 to September 7, 1980 were required to work 181 days. The official deadline for this application is October 16, 1981. 

Veterans who served from August 5, 1964 to May 7, 1975 

The veterans who were in service from August 5, 1964 to May 7, 1975, must have remained active for 90 days. For Vietnam veterans this date starts from February 28, 1961 

Veterans who served from February 1, 1955 to August 4, 1964 

Veterans who remained in service from February 1, 1955 to August 4, 1964 must have accomplished 181 consecutive days of active duty. 

Veterans who served from June 27, 1950 to January 31, 1955: 

Veterans who remained in service from June 27, 1950 to January 31, 1955 must have done active duty for 90 days. 

Veterans who served from July 26, 1947 to June 26, 1950: 

Veterans who remained in service from July 26, 1947 to June 26, 1950 must have done active duty for 181 consecutive days. 

Veterans who served from September 16, 1940 to July 25, 1947: 

Veterans who remained in service from September 16, 1940 to July 25, 1947 must have done active duty of 90 days. 

Additional eligibility requirements for veterans 

Discharged Veterans; due to government convenience, hardship, certain medical conditions, reduction-in-force or have some type of disability which is related to military service can qualify for a VA mortgage loan even if they don’t have the minimum service duration requirement. 

Dishonorably discharged Veterans do not qualify or are eligible for the VA mortgage loan program. 

Eligibility Of VA loans For Non-Veterans

The VA mortgage program is also accessible for the people who are non-veterans. This category of participation involves some military borrowers who are still active, their relatives and others. 

The Reference Guide For VA Home Loans On Active Service Persons

Service persons who are on active-duty may be eligible for a VA loan after 90 days of service. Some military couples may also qualify for a VA loan. 

The Reference Guide For VA Home Loans On Military Spouses

Some Military Spouses may also be eligible for VA mortgage loan. 

Military person who is on service duty and has been officially declared as a war prisoner (POW) for minimum of 90 days or missing in action (MIA). If the serviceperson whom the spouse is married is alive, the spouse is eligible for VA loan. This is one-time use eligibility criteria. 

If a serviceperson is died on active duty, or became totally disabled veteran or died due to service-related disability then the surviving spouse of that service person may become eligible for VA mortgage loan if he/she has not been remarried. 

For spouses who have been remarried the process is more complicated and rules are different. They may need to consult with a VA-approved lender to check their eligibility. 

If a spouse has obtained a VA mortgage loan with an on-duty service person or veteran who subsequently died may be eligible to get a new VA loan at lower interest rate to refinance the previous VA loan. This process will happen trough VA streamlined refinance program. 

In this case the death of the veteran is not necessarily due to his/her service. 

If an active duty veteran or serviceperson have children and that veteran is alive or deceased. The children are not eligible for VA loans as an advantage for their parent’s service. 

National Guard Members and Reservists

Reserve Army personnel and Members of the National Guard may qualify for VA loans if they have worked for six years in the Reserve or National Guard and continue to provide services in the selected reserve or if they have been honorably discharged, added to the list of retired personnel or transferred to the standby reserves after honorable service or a component of the Ready Reserve other than Selected Reserve. 

The Reference Guide For VA Home Loans On Eligibility

People who have worked in some federal institutions may also qualify for a VA loan. 

Examples include the US Army cadets, The Air Force or the cadets of the Coast Guard Academy, Midshipmen of the Naval Academy, The merchant fleets of World War II and the officials of the government of the EE. Officers of US Public Health and National Oceanic & Atmospheric Administration officers.  

If you have been denied a home loan or have any questions about real estate or mortgage please contact the author, Alex Carlucci of Gustan Cho Associates at Loan Cabin Inc. at 262-716-8151 or text us for faster response. Or email Alexander Thomas Carlucci of The Gustan Cho Team at Loan Cabin Inc. at alex@loancabin.com. Alex works when you work, so feel free to contact him any time. 

This BLOG On The Reference Guide For VA Home Loans Was UPDATED On December 30th, 2018 By Alex Carlucci of Gustan Cho Associates at Loan Cabin Inc.

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