VA Home Loan Qualification
The Benefits of Homeownership May Reach Further Than You Think When you PCS
PCSING to Fort Meade MD, Andrews Air Force Base or Patuxent River?
More than ever, our homes have become an integral part of our lives. Today they are much more than the houses we live in. They’re evolving into our workplaces, schools for our children, and safe havens that provide shelter, stability, and protection for our families through the evolving health crisis. Today, 65.3% of Americans are able to call their homes their own, a rate that has risen to its highest point in 8 years.
June is National Homeownership Month, and it’s a great time to reflect on the benefits of owning your own home. Below are some highlights and quotes recently shared by the National Association of Realtors (NAR). From non-financial to financial, and even including how owning a home benefits your local economy, these items may give you reason to think homeownership stretches well beyond a sound dollars and cents investment alone.
Owning a home brings families a sense of happiness, satisfaction, and pride. If you bought a home everytime you PCSed on Active duty, refinanced that home into conventional as a rental. Use your VA for your next duty station. If you move 5 times that is 5 checks a month after you retire. There is debt service, you are military, we have very high standards as members of the arm services.
Contact Skip Young Realtor® for more information on how to make money in Real Estate. Do not listen to the scams. To include whole selling. Real Estate has been around forever. The first VA home loan was given to a veteran in Washtington DC. If you served, you have that benifit. There are stips based on teh banks. But VA will back your 25% of the loan which will take your loan less than 80% which is what banks want to see.
Every Duty Station you can have pride of home ownership. Leave the battalion and head home to your comfortable house near Fort Meade MD, Andrews Air Force base or Patuxent Naval Base. Pride of Ownership: It feels good to have a place that’s truly your own, especially since you can customize it to your liking. “The personal satisfaction and sense of accomplishment achieved through homeownership can enhance psychological health, happiness and well-being for homeowners and those around them.”
Property Maintenance and Improvement: Your home is your stake in the community, and a way to give back by driving value into your neighborhood. When you use Skip Young Realtor® to find your home to purchase and you need to deploy or TDY, I am there if somethinig goes wrong in my territory. Remember I want you to buy around every base you come in contact through your career with. Thats how you build life wealth. I am here to help and guide you. We dont need an audotorium to get it done either. Now day we can Facetime.
Civic Participation: Homeownership creates stability, a sense of community, and increases civic engagement. It’s a way to add to the strength of your local area. You already serve our great country. Those who never served in the Military see us as a Paycheck to pay the rent every month with our BHA. What they are missing is that we are also high speed low drag trained to pick up thousands of brass after firing you M-16. So we tend to go out of our way as Veterans and Sevice Members to keep our country clean.
Buying a home is also an investment in your family’s financial future. Again like I said, buy and rent. When you retire, by your Dream Home or have it built to your specifications. You earned it. Remember stay away from the enemy. You cannot wholesale homes. You buy, own, live and then rent. 15 years later you sell. Remmeber Skip Young Realtor® is here to assist you in everyway
Net Worth: Homeownership builds your family’s net worth. “The median family net worth for all homeowners ($231,400) increased by nearly 15% since 2013, while net worth ($5,000) actually declined by approximately 9% since 2013 for renter families.”
Financial Security: Equity, appreciation, and predictable monthly housing expenses are huge financial benefits of homeownership. Homeownership is truly the best way to improve your long-term net worth.
Economic Benefits by using your VA Home Loan
Housing-Related Spending: An economic force throughout our nation, housing-related expenses accounted for more than one-sixth of the country’s economic activity over the past three decades.
GDP Growth: Homeownership also helps drive GDP growth as the country aims to make an economic rebound. “Every 10% increase in total housing market wealth would translate to approximately $147 billion in additional consumer spending, or 0.8% of GDP, as well as billions of dollars in new federal tax revenue.”:
Entrepreneurship: Homeownership is even a form of forced savings that provides entrepreneurial opportunities as well. “Owning a home enables new entrepreneurs to obtain access to credit to start or expand a business and generate new jobs by using their home as collateral for small business loans.”
Meaning of a VA “Guaranteed” Loan
Let's examine the meaning of a VA “Guaranteed Loan”
The Veteran's Administrations (VA) is not a bank VA does not loan the money, find the loan, or service the loan. If something goes wrong and the bar can't make their payments anymore, The Lending institution can go to the VA to cover any losses they might incur. The guarantee replaces the protection the lender normally receives by requiring a down payment for mortgage insurance and allows veterans to have the ability to obtain faverolle financing terms. Most VA home loans are handled entirely by private lenders and VA really gets involved with the loan process.
Note: as long a lender follows the proper under writing protocol, should the VA loan ever go into default. The lender is entitled to 25% of the loan amount
Features of a VA loan
The Features of a VA home loan include the following:
A purchase loan must be for veterans' own personal occupancy.
The max guarantee is at the 25% of the one unit, Fannie Mae and Freddie Mac maximize conforming loan limit. There is no down payment required up to 100% financing plus the VA funding fee. There is the ability to finance the VA funding fee only fixed or arm option loans - fully mature risible - no interest only options. The VA loan has flxible credit standards. The VA loan is an assumable mortgage.
The VA loan has no prepayment penalties.
VA eligible loan purposes
The law authorizes VA to guarantee loans made to eligible veterans only to purchase or construct a residential including aba-approved condominium unit to be owned and occupied by the veteran as a home. The VA loan man clued stimulus purchase of the land on which the residence is situated or will be situated. Loans may also be guaranteed for the construction of residents on hand land already owned by the veteran peer The residential property may not consist of more than four family units at 1 business unit except in the case of certain joint loans. To refinance an existing VA loan for the purpose of lower interest to refinance an existing mortgage loan or other indebtedness secured by Alene of record on a residence owned and occupied by the veterans home home. To improve a residence owned and occupied by the veteran as a veterans home through the installation of a solar heating system, a solar heating and cooling system, or a combined solar heating and cooling system, or through the application of residential energy conservation measures. To purchase a one-family residential unit in a condominium Housing Development approved by VA no spot approval allowed. To purchase a farm residence to be owned and occupied by the veterans home.
VA ineligible loan purposes
Some examples of Eligible loan purposes include:
Purchase of unimproved land with the intent to improve it set at some future date that is the land purchase is not in conjunction with the construction loan. Since this stipulation has been made the VA has opened up with the bank's to combine the lot the land and the bill in one package deal. purchase or construction of a dwelling for investment purposes. The property is primary for residential purposes purposes, they The non residential area does not exceed 25% of the total floor area. Purchase of more than one separate residential unit or Lots unless the veteran will occupy Occupy.
Basic requirements for a VA loan approval
The applicants must be an eligible veteran who has available entitlements, and a valid Certificate of Eligibility eligibility COE. Alone must be for an eligible person. The veterans must occupy the property as a primary residence within a reasonable period after the loan closes. The veteran must be satisfactory credit risk.
The income of the borrower must be shown to be stable and sufficient to meet the mortgage payments and cover the cost of owning a home while taking care of other obligations and expenses and still have enough money left over to support their family.
VA loan occupancy requirement
The law requires a veteran obtaining a VA guaranteed loan to certify that he or she intends a person to personally occupy the property as his or her home. As of date of certification the veteran must either: a person may live in the property as his or her own home, or in 10, upon completion of the loan and acquisition of the dwelling to personally move into the property and use it as his or her home within a reasonable time.
Example: a veteran living in a home purchased with a VA loan is transferred to duty station overseas. The veteran rent out the home. He or she may refinance the VA loan with the Earl's irrrl based on previous occupancy of the home.
Reasonable time of occupancy
Occupancy within a reasonable time typically means within 60 days after loan closing. The veteran certifies that he or she will personally occupy the property at his or her home at a specific date after loan closing, and there is a particular future events that will make it possible for the veteran to personally occupy the property as his or her his or her home on a specific future date.
Tip: occupancy at a date be on 12 months after loan closing generally cannot be considered reasonable by VA.
Occupancy by spouse or dependent child
Occupancy intended to be occupied by the spouse or dependent child satisfies the occupancy requirement for veterans who are on active duty and cannot personally octopi the dwelling within a reasonable time.
In the case of a dependent child, the veterans attorney in fact or legal guardian of the dependent child must make the certification signs VA form 26 - 1820, report and certification of loan disbursement.
Occupancy by the spouse may also satisfy the requirement if the veteran cannot personally occupy the dwelling within a reasonable time due to distant deployment other than military service. In these specific cases, consult your RLC that is your Regional Loan Center to determine if this type of occupancy meets the VA requirements.
Tip: 4 of 3 IRRRL, a certification that the spouse or dependent child previously occupied dwelling as a home will satisfy this requirement.
Occupancy required for deployed
Single or married service members, while deployed from their permanent Duty stations, are considered to be in a temporary Duty status and able to meet the occupancy requirement. This is true without regard to whether or not a spouse will be available to occupy the property prior to the veterans return from deployment.
Other types of occupancy
Other types of occupancy include:
Occupancy after requirement - if the veteran states that he or she will retire within 12 months and want a loan to purchase a home in the retirement location:
verify the veterans eligibility for retirement on a specific date. Carefully consider the applicant's income after retirement.
Delayed occupancy for repairs improvements space - space Home Improvements for refinancing loans for extensive changes to the property which will prevent the veteran from occupancy the property while the work is being completed, constitutes an exception to the reasonable time requirement. The veteran must certify that he or she intend to occupy or reoccupy the property as a home completion of the substantial improvements or repairs.
Intermittent occupancy space - the veteran need not to maintain a physical Presence at the property on a daily basis. However, occupancy as a Veterans Home implies that the home is located within reasonable proximity to the veterans place of employment.
Use the property as a seasonal vacation home does not satisfy the occupancy requirement.
Unusual occupancies circumstances - please check with the VA Regional Loan Center for any occupancy circumstances that do not fit one of these criteria
Persons eligible for a VA loan
In order to obtain a VA home loan you must first fill out a VA form 26 - 1880, the request for your Certificate of Eligibility COE. This certificate is issued only through the Veterans Administration, and is the first step towards applying for your loan. Veterans, active duty, guard or reserve, and Military spouses potentially qualify for the certificate.
Persons eligible for a VA loan - active-duty 90-day rule or six-month rule - a veteran is eligible for VA home loan benefits if he or she served on active duty in the Army, Navy, Air Force, Marine Corps or Coast Guard after September 15th, 1940, and was discharged under conditions other than dishonorable for either:
90 days or more, at part of which occurred during wartime, 181 continuous days or more time.
2 year rule if not on active duty - a greater length of service is required for veterans who: and missed and service began after September 7th 1980, or entered Service as an officer after October 16th, 1981.
These veterans must have completed either:
24 continuous months of active duty, or the full. For which called or ordered to active duty but not less than 90 days any part during wartime or 181 days during peacetime.
This rule is due to active legislation:
Tip: Cases involving other honorable discharges will usually require further deployment by VA. This is necessary to determine if the service was under then dishonorable conditions.
Person eligible for a VA loan - Reserves
Members of the reserve and National Guard who are not otherwise eligible for loan Guaranty benefits are eligible upon completion of six years service in the reserve or guard unless released earlier due to a service-connected disability.
The applicant must have received an honorable a general or under honorable conditions is not qualifying discharge from such service unless he or she is either:
In a inactive status awaiting final discharge, or still.
Less than six years may qualify if honorably discharged with a disability.
Title 10 orders
If reservists or National Guard are activated for combat Duty, they must be overseas for 90 days. They can get a VA loan and this will show on the COE..
Note: there are numerous exceptions to the length of service requirements. For example, one day of service is sufficient for an individual who is discharged or released from service regular active-duty or Reserve guard due to service-connected disability
Person eligible for a VA loan - surviving spouses some spouses of veterans may have home loan eligibility if:
The unmarried surviving spouse of a veteran who died as a result of service or service-connected causes causes, the or from who on a in December to 2003, and the who as a MIAA or for for a days. It looks Eligible poww provision is limited to one time use only.
Surviving spouses of veterans who died from non service-connected causes may also be eligible if certain conditions are met.
The veteran was rated totally disabled for 10 years or more immediately preceding death was raided totally disabled for not less than 5 Years From date of discharge or release from active duty to date of death. The veteran was a former prisoner of war who died after September 30th 1999, and was rated totally disabled for not less than one year immediately preceding death.
Note: if a plane for the first time, surviving spouses must complete VA form 26 - 1817, request for determination of loan guarantee eligibility - unmarried surviving spouse , instead of VA form 26 - 1880.
Surviving spouses COE not issued via an automated Co. In order to obtain a surviving spouse COE, upload the completed DA form 26-18 17 and supporting documentation into Webley, and complete the electronic application.
Persons eligible for a VA loan - other Congress has periodically granted veteran status to two groups other members of the Army, Navy, Marine Corps, and Coast Guard, such as certain members of the Public Health Service, cadets at the service academies, certain Merchant Seaman, etc.
Example: one day of service is sufficient for an individual who is discharged or released from service regular active-duty or Reserve guard due to a service-connected disability.
Very important: eligibility does not expire this is something that veterans themselves do not always understand.
Tip: because of the complexity and number of exceptions, lenders should not assume a veteran is not eligible. Instead, they should make an application and allow a determination of eligibility.
Certificate of Eligibility COE
Veterans and active-duty service members must first obtain a c o e Certificate of Eligibility form 26 - 1880 b a.
Have the lender order this for the veteran. Letters can pull Certificate of Eligibility online with three pieces of information in less than 5 minutes.
Tip:Inability to obtain a Certificate of Eligibility on web LG why does not mean the veteran is ineligible, only that the system does not have sufficient information to make an automatic determination. The Certificate of Eligibility tells the lender the following:
Amount of entitlement
Funding fee and conditions
If you are stationed here and are looking to purchase or sell a home please contact Skip Young Realtor®:
Real Estate Benifits
The benefits of homeownership are vast and go well beyond the surface level. Homeownership is truly a way to build financial freedom, find greater satisfaction and happiness, and make a substantial impact on your local economy. If owning a home is part of your dream, let’s connect today so you can begin the homebuying process
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Skip Young Realtor® with Reviews as a Realtor®, has an extensive background in working with an Elite Unit while serving his country from 91 - 94. Now an Award-winning Realtor®, located in Waldorf MD, has proven not just in the ranks of the field with an Elite unit in the Army, but also in the Maryland Real Estate Business. By working with every type of client, to include active duty and veterans alike. His dedication to helping those who are serving and need to use their VA loan, need information on leasing a property due to a short-term duty station at any one of the bases here in Washington DC, Maryland or Virginia. Military bases such as:
Hire Skip Young Relator® for your next Home Purchase or Sale
Waldorf Maryland Realtor® - Skip Young Realtor®
If you are stationed here and are looking to purchase or sell a home please contact Skip You are serving and need to use their VA loan, need information on leasing a property due to a short-term duty station at any one of the bases here in Washington DC, Maryland or Virginia. Military bases such as:
Skip Young Realtor® with Reviews as a Realtor®, has an extensive background in working with an Elite Unit while serving his country from 91 - 94. Now an Award-winning Realtor®, located in Waldorf MD, has proven not just in the ranks of the field with an Elite unit in the Army, but also in the Maryland Real Estate Business. By working with every type of client, to include active duty and veterans alike. His dedication to helping those who are serving and need to use their VA loan, need information on leasing a property due to a short-term duty station at any one of the bases here in the Washington DC, Maryland or Virginia. Military bases such as:
There are currently 23 million veterans and service members right in your local community of Washington DC, Maryland, and Virginia. They transact over $153 billion annually in the Local Real Estate purchases and Selling of Property, along with the Rental Market. Learn how you can help tap into and serve the veteran community with VAREP, the Greater Annapolis Chapter. Skip Young your Waldorf MD Realtor® and Veteran is still continuing to serve my country by helping our community of brothers and sisters by representing the Government Affairs division. The position is about assisting in changing the laws that help protect veterans and service members who need to find housing in the Washington DC Maryland and Virginia area.
Skip Young | EXP Realty | Waldorf MD Realtor®, Veteran, New Home Sales
Broker: 888-860-7369 x 240
- William Richmond