There are many veterans in the United States, with over 1.5 million being in the state of Texas alone. They've trained, fought, and bled for our country, and so it's only fair that we do our part to help them when they return to it. And the VA home loan program is one of the best ways to do so.
The VA home loan program was established by the Department of Veteran Affairs in 1944 and has helped find more than 22 million veterans homes. The VA home loan program offers a whole host of benefits, including no down payment, no mortgage insurance, and lower rates than a traditional loan.
Whether you're a veteran or you want to help a veteran in your life, it's normal to have questions about this program. Below, we'll answer a few of them.
What is the VA home loan program process like?
The VA home loan program process timeline really depends on the communication between the VA and VA home loan lenders. But, assuming that everything is filed correctly, that you are eligible, and that there are no complications, it shouldn't take longer than a traditional home loan.
How Do I Apply for a VA Home Loan?
The first step you should take is getting your Certificate of Eligibility, which most lenders can obtain instantly from the VA's website. But if you'd like to handle that step yourself, you apply directly to the VA Eligibility Center by mailing in proof of service and a VA Form 26-1880. You can find this form online at the VA website.
After this step, you go to your chosen lender and submit your application. They'll run an appraisal on your chosen property, and a credit report and check on you. If they find you qualify based on income and credit, they'll work with you to close on your VA home loan and the VA will guarantee it.
How Much Is Guaranteed on a VA Loan?
As of January 1, 2020, the VA does not set a VA loan limit. The VA will guarantee 25% of the loan amount. There is no down payment requirement for high limit loans (jumbo loans) that exceed the conforming loan limits.
As you can see, there's nothing too complex about this loan program. If you're a veteran in need of a loan to make a home purchase, talk to a local VA home loan lender. You can get the best benefits and terms with a VA guaranteed loan, and it'll take no more time than a conventional one.