VA Home Loans
Eligible veterans, including active duty veterans, discharged veterans, and reservists, may
obtain loans guaranteed by the Department of Veterans Affairs (VA) to purchase or refinance homes,
condominiums, and manufactured homes. Unmarried surviving spouses may also be
eligible. VA home loans feature a negotiable interest rate, choice of loan types, limited
closing costs, no monthly mortgage insurance premium, and no down payment is required in most
cases.
Down payment: A traditional feature of VA home loans is that they typically
require no down payment. A down payment is required if the home's purchase price exceeds the
reasonable value of the property, the property being purchased is a manufactured home not
permanently affixed, or the loan type is a Graduated Payment Mortgage.
Verification: You will find many lenders to choose from, since most mortgage
companies, banks and credit unions participate in this program because the VA guarantees a portion
of the loan amount which protects them from loss if the loan should ever go to
foreclosure. The lender will ask you to provide evidence, in the form of a Certificate of
Eligibility (COE), that you are eligible to apply for a VA home loan. In many instances your
lender will be able to obtain your COE online in seconds. However, since not all COE requests
can be processed online, there will be instances in which the veteran needs to apply for a COE
through the Winston-Salem Eligibility Center. To obtain a COE in that manner, VA Form 26-1880,
"Request for Certificate of Eligibility" will need to be completed. The form and specific
instructions can be accessed at
http://www.vba.va.gov/pubs/forms/vba-26-1880-ARE.pdf.
Realtors: Most real estate agents are also familiar with the VA home loan program
and would be happy to answer your questions.
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Hot Tip:
This benefit may be used more than once. More detailed information on VA Home Loans is
available on the Internet at
http://www.homeloans.va.gov/veteran.htm.
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