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REQUIRED VA FORMS
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DD-214
Separation:
(Form)
Certificate
of Eligibility:
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Mail
Your Certificate of Eligibility to:
VA Eligibility Center
P.O. Box 20729
Winston-Salem, NC, 27120
VA LOAN AMOUNTS as of January 1st, 2008:
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$417,000
= One Unit Properties
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$533,850
= Two Unit Properties
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$645,300
= Three Unit Properties
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$801,950
= Four Unit Properties
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VA
Qualifying Requirements - Era of Dates - Length of Service
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| World War II |
12/07/41 - 12/31/46 90 days |
| Peace Time | 07/26/47 - 06/26/50 181 continuous days |
| Korean Conflict | 06/27/50 - 01/31/55 90 days |
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Post Korean |
02/01/55 - 08/04/64 and 181 continuous days |
| Vietnam | 08/05/64 to 05/07/75 90 days |
| Post Vietnam | 05/08/75 to 09/07/80 181 continuous days |
| Enlisted |
09/08/80 to 08/01/90 24 months |
| Officers | 10/17/81 to 08/01/90 24 months |
| Persian Gulf | 08/02/90 to Undetermined 24 Mths. or period called to Active |
| Still on Active Duty | 181 continuous days |
| Active duty | no less than 90 days or if discharged service-connected disability |
To be eligible, if you were discharged for a service-connected disability, or you would have to be discharged after completing at least 20 months of a 2-year enlistment, or you completed 181 days of active duty and was discharged because of a hardship, or were determined to have a service connected disability.
You mush have also completed 24 months of continuous active duty or the full period (at least 181 days) for which you were called or ordered to active duty, and been discharged or released under conditions other than dishonorable.
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QUESTIONS
& ANSWERS
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What is the maximum VA loan?
Although there is no maximum VA loan (limited only by the reasonable value or the purchase price), lenders generally limit the maximum VA loan to $417,000.
Is a VA guaranteed loan a gift?
No. It must be repaid, just as you must repay money you borrow. The VA guaranty, which protects the lender against loss, encourages the lender to make a loan with terms favorable to the veteran. But if you fail to make the payments you agreed to make, you may lose your home through tore closure, and you and your family would probably lose all the time and money you had invested in it, I the lender does take a loss, VA must pay the guaranty to the lender, and the amount paid by VA must be repaid by you. If your loan closed on or after January 1, 1990, you will owe the Government in the event of a default only if there was fraud, misrepresentation, or bad faith on your part.
What can a veteran do who has lost his/her original discharge papers and does not have a legible copy?
The veteran should obtain a Certificate in Lieu of Lost or Destroyed Discharge. Any VA Veterans Benefits Counselor at the nearest VA office will assist a veteran in obtaining necessary proof of military service.
Does a Veteran's home loan entitlement expire?
No. Home loan entitlement is generally good until used. However, the eligibility of service personnel is only available so long as they remain on active duty. If they are discharged or released from active duty before using their entitlement, a new determination of their eligibility must be made, based on the length of service and the type of discharge received.
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Does VA Entitlement provide cash to the Veteran? No. The amount of entitlement relates only to the amount VA will guarantee the lender against their loss if their is one. Can a Veteran use their entitlement more than once? If you have used all or part of your entitlement, you can get that entitlement back to purchase another home if the following conditions for "restoration" are met: |
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The
property has been sold and the loan has been paid-in-full,
or a qualified veteran-transferee (buyer)
must agree to assume the outstanding balance on the loan and agree to
"substitute" his or her entitlement for the same amount of entitlement
you originally used to get the loan. The buyer must also meet the occupancy
and income and credit requirements of the law.
May several Veterans use their entitlement to acquire property together?
Yes. The guaranty is based on each veteran s interest in the property, but the guaranty on the loan may not exceed the lesser of 30 percent of the loan amount or whatever your entitlement amount is.
May a Veteran join with a non-veteran in obtaining a VA loan?
Yes, but the guaranty is based only on the veteran's portion of the loan. The guaranty cannot cover the non-veteran's part of the loan. This does not apply to a loan to a veteran and spouse when the spouse is not a veteran.
Can a VA loan be extended to reduce the monthly payments?
Yes, provided the veteran and the lender want to extend it and the extension provides for complete repayment of the loan within the maximum period permitted for loans of its type.
What if the Veteran dies before the loan is paid off?
The VA guaranty will pay off the loan balance and the surviving spouse or other co-borrower must continue to make the payments. If there is no co-borrower, the loan becomes the obligation of the veteran's estate. Protection against this may be obtained through mortgage life insurance, which must be purchased from private insurance sources.
Can a Veteran obtain a loan in one State for the purchase of property in another State?
Yes. However, many lenders limit their lending operations to certain areas.
Release of Liability:
By having the buyer assume all of the veteran's liabilities on the VA loan, and by having VA or the loan holder approve the buyer and the assumption agreement. If a veteran does not obtain a release of liability, and VA suffers a loss on account of a default by the assumer or some future assumer, a debt may be established against the veteran. Also, strenuous collection efforts will be made against the veteran if a debt is established.
Can a Veteran Buy or Construct a residential property containing more than one-family unit?
Yes, but the total number of separate units cannot be more than four if one veteran is buying. If more than one veteran is buying, then one additional family unit may be added to the basic four for each veteran participating; thus, one veteran could buy four units; two veterans, six units; three veterans, seven units, etc.
In addition, if the veteran must depend on rental income from the property to qualify for the loan, the veteran must show that:
(a) He/she has the background or qualifications to be successful as a landlord, and
(b) He/she has enough cash reserves to make the loan payments for at least 6 months without help from the rental income.
Does the Certificate-of-Eligibility guarantee approval of a VA loan?
No. The veteran must still be found to be qualified for the loan from an income and credit standpoint.
Do VA Business Loan?
No. but business loans may be obtained through the SBA (Small Business Administration). The SBA gives preference to veterans wishing to obtain small business assistance. For more information on this financing, consult your telephone directory for the SBA office nearest you.
Do Farm Loans Apply:
No, except for a farm on which there is a farm residence which will be personally occupied by the veteran as a home.
Can a Veteran obtain a VA loan to purchase of property in a foreign land?
No. The property must be located in the United States, its territories, or possessions. The latter consist of Puerto Rico, Guam, Virgin Islands, American Samoa and Northern Mariana Islands.
Assuming a VA loan - Release of liability:
If the loan was closed after March 1, 1988, the lender or VA must be notified and requested to approve the assumer and grant the veteran release from liability. If the loan was closed prior to March 1, 1988, the loan may be assumed without approval from VA or the lender. However, the veteran is strongly urged to request a release of liability from VA.
Can I qualify if discharged under dishonorable conditions?
All Veterans discharged under other than dishonorable conditions from at least 90-days of service which began before September 8, 1980, are eligible. Veterans of enlisted service in a regular component of the Armed Forces, which began a her September 7, 1980, or officers or reservists who entered on active duty after October 13, 1982, must have served at least 24 months of service or the full period for which called to active duty or Active Duty for Training before being discharged, unless the discharge was for hardship or disability.
Members
of the Selected Reserve:
Individuals who are not otherwise eligible and who have completed at least
6 years in the Reserves or National Guard, or been discharged because
of a service-connected disability, and
(1)
have been discharged under honorable conditions, or
(2) have been placed on the retired list, or
(3) have been transferred to an element of the Ready Reserve other than
the Selected Reserve, or
(4) continue to serve in the Selected Reserve are eligible for a GI Loan.
(Eligibility for members of the Selected Reserve expires September 30,
2007.)
Forms:
Request
for Certificate of Eligibility:
To request a Certificate of Eligibility you must have served in the U.S.
Service, we will request the document for you upon the taking of an application
for purchase.
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