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VA
Limits VA Loans
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VA REQUIRED FORMS:
| 1) CERTIFICATE OF ELIGIBILITY |
Mail
Certificate to: |
| 2) DD-214 |
Follow the instructions on your "SF-80" Form. |
VA LOAN AMOUNTS:
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We
can also give you information on qualifying factors, after we know what
kind of service you have. But, you must have 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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BELOW: |
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WHAT IF I LOSE MY ORIGINAL DISCHARGE PAPERS?
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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.
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DOES THE CERTIFICATE OF ELIGIBILITY - GUARANTEE LOAN APPROVAL?
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NO. The veteran must still be able to financially qualify for the loan amount and have fairly good credit. |
IS A VA GUARANTEE A LOAN GIFT?
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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
a foreclosure.
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DOES MY HOME LOAN ENTITLEMENT EVER EXPIRE?
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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. |
IS THE VA ENTITLEMENT - CASH TO THE VETERAN?
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NO.
The amount of entitlement relates only to the amount VA will guarantee
the lender against their loss if their is one.
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CAN I USE MY VA 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, which means you can not own a home currently under VA.
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VA only allows one home to be owner occupied by the Veteran to qualify again, if a veteran owns a home and wants to purchase another home - they must pay their first mortgage off in full, then they can purchase another home under VA. |
CAN A VETERAN OBTAIN A LOAN FOR A PROPERTY OUT OF STATE?
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YES.
However, many lenders limit their lending operations to certain
areas.
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CAN I PURCHASE A HOME WITH ANOTHER VETERAN?
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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.
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CAN A VETERAN JOIN WITH A NON-VETERAN TO QUALIFY?
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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 their SPOUSE. when the Spouse
is not a Veteran.
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CAN MY CURRENT VA LOAN BE EXTENDED TO REDUCE MY MONTHLY PAYMENTS?
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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.
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WHAT IF THE VETERAN DIES BEFORE THEIR LOAN IS PAID OFF?
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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.
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