What Is the VA Loan Guarantee?
So what is the VA home loan guarantee? In an effort to repay veterans for their years of service, the Department of Veterans Affairs has established the VA loan program. VA loans—both purchase loans and refinance loans—normally come with lower interest rates than conventional loans. Additionally, a portion of all VA loans are guaranteed by the VA, meaning that, if the home forecloses, the VA will compensate the lender a certain percent of the loan amount. Because of this VA loan guarantee, it gives lenders another layer of protection in case the loan were to default. With this VA home loan guarantee veterans are able to purchase a home with not money down. A qualified veteran or military service member is able to purchase a home with a 100% financing. The VA guarantee makes the VA loan process available only to those men and women that have served our country.
Am I Eligible to Receive a VA Guaranteed Loan?
Most veterans, active duty service members, and their spouses are eligible to receive VA benefits such as a VA guaranteed loan. You can give us a call at 855-223-0705 or visit this link to learn more about requirements in relation to when, where, and for how long you served. Once you’ve determined this, all VA loan applicants need to acquire a Certificate of Eligibility (COE) from the VA. You can do this a number of ways:
Visit the Veteran’s Information Portal or eBenefits to apply for a COE electronically. Not all electronic requests are possible; if the VA doesn’t have enough information on you in its records, you may have to do this by mail or with your lender.
Through Your Lender
Most VA loan lenders can apply for a COE for you using Web LGY. This is arguably the fastest way to issue a COE. However, as with online requests, if the VA doesn’t have enough information on your service history, your lender may not be able to request a COE for you.
Print out and complete VA Form 26-1880, Request for Certificate of Eligibility. Mail this form, along with a statement of service, Certificate of Release or Discharge from Active Duty, or DD Form 214, to:
VA Loan Eligibility Center
Attn: COE (262)
PO Box 100034
Decatur, GA 30031
(For more information about which forms are required as proof of service, visit this link.)
How Can I Use the VA Guaranteed Loan?
So long as they occupy the residence, eligible veterans can use VA loans to:
- Buy a home
- Build a home
- Buy manufactured homes or lots
- Buy a condo
- Refinance a home
- Perform repairs or other construction
- Install energy efficient upgrades
Our Mission: To Save Veterans Money
Here at Low VA Rates we work with veterans daily to help them achieve the dream of home ownership. We believe that VA loans are one of the best VA benefits to help veterans save money and purchase a home that they might not be able qualify for with a traditional mortgage. If you have questions about the VA home loan guarantee or any eligibility requirements, give us a call at 855-223-0705, or click here to get started online.