The process of buying a home can be tedious, especially for first-time homebuyers. While the Department of Veterans Affairs (VA) has a popular home loan program that helps to make the goal of home ownership more financially attainable for service members, the additional steps required to ensure VA eligibility can add to the process and possibly cause it to feel overwhelming.
A VA LOAN is a mortgage issued by approved lenders that is guaranteed by the federal government. It allows eligible service members and Veterans to either refinance up to 100% of their home or buy a new home with no money down.
Below are six steps to help guide Soldiers through the process of obtaining VA Home Loan approval. Armed with this information, Army National Guard Soldiers and their Families can find peace of mind in knowing what to expect from the home loan process.
Determine Eligibility – Members of the National Guard may qualify for a VA loan if they meet one of the following qualifications:
- Served six years and were either honorably discharged, retired or transferred to Standby Reserve; or an element of the Ready Reserve other than the Selected Reserve, after honorable service;
- Served in the Selected Reserve for more than six years;
- Served on active duty for more than 90 days during a wartime period;
- Discharged or released from active duty for a Service-related disability.
Find an Approved Lender – Once eligibility is determined, Soldiers should find a VA-approved lender. This can be done by contacting the nearest VA Regional Loan Center. Loan Center representatives can connect service members with approved lenders and help get them started on the approval process.
Obtain a COE – Once you have found an approved lender, it’s time to obtain a certificate of eligibility (COE). The COE confirms eligibility to participate in the program. A COE can be obtained from the VA, using form 26-1880, or from a private lender. Proof of service is required for a COE from a private lender.
Complete the VA Application – Next, send your application to the VA. The application is available online, and can be submitted through the VA website at www.benefits.va.gov/homeloans. Alternatively, it’s also possible to apply through your lender.
Complete the Appraisal Process – When the loan application is approved, the VA will begin an appraisal process. During the appraisal process, the VA will send a qualified appraiser to examine the interior and exterior of the home to determine its appropriate value. This is not a thorough inspection, but a visit to determine the value of the property. The appraiser will then produce a Certificate of Reasonable Value, which will be used when determining the value of the VA loan.
Be Patient – At this point, patience will become an important virtue. The VA will review the COE, and compare the Certificate of Reasonable Value with the Family’s credit score. This process can take anywhere from two weeks to over a month, depending on how quickly the different forms process through the VA.
A VA loan is an incredible – and exclusive – benefit of which eligible service members should take advantage. It can easily save thousands of dollars in the homebuying process! For more information about the VA home loan program and how it applies to Army National Guard Soldiers, contact a VA Regional Office with loan guaranty operations. A directory of regional offices can be found at www.benefits.va.gov/HOMELOANS or by calling 1-877-827-3702.
BY STAFF WRITER Liam Griffin
