Veterans Affairs Loans
VA Loans are guaranteed by the U.S. Department of Veterans Affairs. In Fort Lauderdale, servicepersons and veterans can qualify for a VA Loan, which usually offers a competitive fixed interest rate, no down payment, and limited closing costs. While the VA does not issue the loans, it does issue a certificate of eligibility required to apply for a VA loan.
Avoid Private Mortgage Insurance
Is a Conventional Home Loan Right for You? For a conventional home loan, many lenders require most borrowers to pay monthly insurance (PMI) unless they put down at least 20 percent of the home’s value. This can be tough, especially for a veteran. This insurance policy covers lenders in the off chance that the lender defaults on their payments. With a VA home loan, you will not have to worry about this added expense. This loan is backed by the government and the government assumes all risks associated with the borrower of the home loan. This benefit will allow you to build equity in your home which can ultimately save you thousands of dollars in the long run.
Interest Rates are Competitive
The interest rates that you pay on a home loan are based on the risk that is assumed by the bank in order to finance your home loan. However, since a VA home loan is backed by the government, the bank carries less risk and can offer you an interest rate that is lower than a conventional interest rate.
Your savings will add up significantly without having to pay for PMI, enjoying a lower interest rate, and not needing a down payment.
How can you request a certificate for your VA loans?
When you are trying to receive a VA loan, you will need to obtain a certificate of eligibility. You can receive this certificate after you verify that you are eligible to get a VA home loan. To be eligible for a VA home loan, you must not have been dishonorably discharged from the service, and you must meet all of the service requirements. The service requirements vary for veterans, people who are currently active duty, and individuals who are serving in the National Guard or are a reserve member. If you are a veteran, then you must have served during the qualifying wartime and peacetime dates, for a certain amount of days.
These times and dates include:
- WWII-9/16/1940 to 7/25/1947 for a total of 90 days
- Post-WWII-7/26/1947 to 6/26/1950 for a total of 181 continuous days
- Korean War-6/27/1950 to 1/31/1955 for a total of 90 days
- Post-Korean War-2/1/1955 to 8/4/1964 for a total of 181 continuous days
- Vietnam War-8/5/1964 to 5/7/1975 for a total of 90 days
- For Veterans who served in the Republic of Vietnam- the beginning date is 2/28/1961 to 5/7/1975 for a total of 90 days
- Post-Vietnam War-5/8/1975 to 9/7/1980 for a total of 181 continuous days
- The ending date for officers in Vietnam is 10/16/1981and still served for a total of 181 continuous days
- 24-month rule-9/8/1980 to 8/1/1990 and the beginning date for officers is 10/17/1981, and you must have served for 24 continuous months
- Gulf War-8/2/1990 to present time and you must have served for 24 continuous months
If you are currently on active duty, then any dates are considered eligible as long as you have served for a total of 90 continuous days. If you are part of the National Guard and are a Reserve Member, there are other requirements that you will need to meet as well.
VA loans have changed home ownership for veterans for many years. Also, spouses of deceased veterans or active service members can also be eligible. At Kloze, we can help you figure out if you qualify for a VA home loan.
Who do you contact to receive your certificate for your VA loan?
After you have determined that you are eligible to get a VA home loan, you will need to request your certificate. This document will tell you that you qualify and how much you are entitled to. There are different forms that will need to be obtained depending on if you are a veteran, a spouse, an active service member, or are serving in the National Guard. If you are a veteran and are eligible to receive a VA home loan, you will need to fill out a DD Form 214. You will also be required to have a copy showing the character of service and the narrative reason for separation. This form will also be needed if you are a current or former National Guard or Reserve member that has been activated. If you are an active duty member or a current National Guard or Reserve Member, then you will need to have a current statement of service that is signed by a higher official, and it must include:
- Your full name
- Your Social Security Number
- Your Date of birth
- Your Entry date on active duty
- The duration of any lost time
- The name of the command that is providing the information
If you are a discharged member, then there are other forms that you will need to obtain. The same goes for surviving spouses as well. If you are overwhelmed by the process of getting your certificate of eligibility, contact us today. We can help you obtain the certification that you need. This process should not take long, and we can quickly get you started on your VA home loan application.