VA loans are made by private lenders, such as banks, savings & loans, or mortgage companies to eligible veterans for the purchase of a home which must be for their own personal occupancy. The guaranty means the lender is protected against loss if you fail to repay the loan. The guaranty replaces the protection the lender normally receives by requiring a down payment allowing you to obtain favorable financing terms.

For eligible Veterans VA loans offer 100% loans requiring no down payment or mortgage insurance. Typically these loans also have lower closing coasts. VA will guarantee a maximum of 25 percent of a home loan with a maximum purchase price of 417,000. However the loan does require an up front funding fee that can be between 2 to 3.5% that can be barrowed, and a debt to income ratio of 43%.

Veterans who wish to get a VA loan must have a Certificate of Eligibility. Generally if you have served on active duty and have a discharge other than dishonorable after a minimum of 90 days of service during wartime or a minimum of 181 continuous days during peacetime. There is a two-year requirement if the veteran enlisted and began service after September 7, 1980 or was an officer and began service after October 16, 1981.This is just a general over view of eligibility guidelines for specific information regarding eligibility visit the VA website at http://www.homeloans.va.gov/elig2.htm .

To obtain your Certificate of Eligibility you may be able to visit your lender and get one through them. Not all cases can be processed thought lenders, and it could take a month or more to get your certificate. If you are considering buying a home with a VA loan I recommend applying for your certificate now by filling out form VA Form 26-1880, Request for a Certificate of Eligibility, to the Winston-Salem Eligibility Center, along with proof of military service.

A VA loan can be a powerful tool in helping Military Service Members obtain the dream of home ownership. If you are eligible for the VA benefit I strongly encourage you to take advantage of the benefits afforded you by a grateful Nation.