NY VA Loan FAQs
What is a certificate of eligibility for a VA Loan?
What are the lending limits for a VA loan?
Are there any special requirements for a VA Loan?
VA loans, sometimes referred to as GI loans, are long-term home loans issued by qualified lenders to eligible veterans. Low or no down payment is required and loan terms are favorable.
VA loans typically allow veterans to qualify for home loans larger than Fannie Mae or customary loans. The Veteran’s Administration insures the lender against losses that may be sustained due to default of the loan.
VA loans are only available to eligible veterans with a Certificate of Eligibility.
Return to VA Loan Questions.
Who qualifies for VA Loans?
There are three categories of people eligible for VA Loans, Category A which consists of Veterans, Reservists/National Guard members, and Active Duty. Category B consists of Reservists/National Guard members who have never served on active duty, Category C, the surviving spouse of a veteran who died in service or as a result of service.
People without an honorable discharge have difficulty being qualified for a VA Loan.
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What is a certificate of eligibility for a VA Loan?
A Certificate of Eligibility is required to use the VA Home Loan Guarantee Program. This is a federal government document obtained from the Veteran’s Administration, stating that a qualified veteran is eligible for a VA loan.
There are three ways to apply, online, through the lender, and by mail using a VA Form 26-1880.
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What are the lending limits for a VA loan?
The Loan limits are the amount a veteran may be eligible to borrow without requiring to make a down payment. The basic entitlement of a VA Loan is $36,000, but the Veterans Benefits Act of 2004 increased the amount to $60,000 for certain loans beyond $144,000. Additional entitlement up to 25 percent of the VA county loan limit may be accessible.
There is no set maximum limit the VA allows you to borrow, but most lenders will not approve more than a $417,000 maximum loan amount, and lending limits vary by state.
Are there any special requirements for a VA Loan?
Certain military service requirements must have been met to receive a VA Loan.
Any discharge other than an honorable discharge will need to be investigated by the Veteran’s Administration.
Primarily, the eligibility requirements to receive a VA Loan depend on the amount of time served, if the time of service was during wartime or peacetime, and whether the discharge was honorable. 90 days of service is required at war time, 181 days is required during peacetime.
An un-remarried spouse of a veteran, a spouse of a veteran missing in action, or POW may also be eligible for a VA Loan.
Return to VA Loan Questions.
Can a VA loan be refinanced?
Refinancing a VA Loan is simple. VA streamline refinancing, or interest rate reduction loan (IRRRL) can be done without an appraisal, income documentation, or credit approval qualifications.
All closing costs can be added into the loan amount, so there are no out of pocket expenses.
Existing mortgages cannot be over 30 days late within the past 12 months.
Because entitlements have increased, veterans who already have a VA Loan may be eligible for remaining entitlement of any unused balance from their previous loan and eligible for more money than when they first obtained their loan.
