Special offer

VA Loan Basics: Eligibility and Entitlement

Reblogger
Home Builder with Stanton Homes - New Home Builder

We have quite a few VA homebuyers in this area.  Raleigh is just a hop and skip away from Fort Bragg, and many Armed Forces members choose to retire to this beautiful area too!  I found this VA Loan Basics post helpful, and hope you will too.

Original content by Bruce Reichstein

When an active duty military member or veteran wants to apply for a VA home loan, the first step in the process is to apply for a Certificate of Eligibility from the Department of Veterans Affairs.

The certificate tells the lender two basic things—eligibility and entitlement;

  • The veteran has served long enough to earn VA home loan benefits.
  • The veteran has X amount of entitlement to use for the home loan.

Vets and active service members are eligible when they meet certain general rules:

  • The applicant must have served on active duty in the Army, Navy, Air Force, Marine Corps, or Coast Guard after September 15, 1940.
  • The applicant must not have a dishonorable discharge.
  • The applicant must have served at least 90 days or more during wartime or 181 continuous days or more during peacetime.


EXCEPTION:
There is a two-year requirement for those who served

  • As an enlisted member after September 7, 1980.
  • As an officer after October 16, 1981.

For all who joined after these dates, VA regulations require;

  • 24 continuous months of active duty military service.
  • The full period for which called or ordered to active duty, but not less than 90 days (any part during wartime) or 181 continuous days during peacetime operations.

What this basically means is that brand-new recruits and many just out of their basic training and technical school are not eligible for a VA loan…yet. The good news is that a new recruit can begin working on their credit history between the time they join the service and the time they become eligible for a VA loan. When it’s time to apply for a VA home loan, a smart newcomer to the U.S. military will be ready to take the first step with a solid history of good credit—on time payments for at least 12 months and no bankruptcy issues to overcome.

For applicants who DO have eligibility, the second thing the Certificate of Eligibility tells a lender is how much entitlement the veteran or active duty service member has. What does that mean? Answers in my next blog post.

Posted by

 

 

New Custom Homes in the Raleigh Area - and throughout central North Carolina

 

New Homes Raleigh NC - New Home Raleigh - Raleigh NC New Homes - New Home Raleigh NCStanton Homes makes building your new custom home easy!  We'll guide you through the entire process.  Your custom home is going to be extraordinary when you create it with one of the nation’s top fully involved builders and the high quality materials and craftsmanship that our reputation is built on. View available homes here.

Call 919-278-8070 to find out more about new homes in the Raleigh area. 

Top 10 Best Floor Plans      
Articles copyright Stanton Homes 2006-2018.  Unauthorized use is not permitted.  Provided for informational purposes only, no claims are made by Stanton Homes regarding the validity of any statements.  Please note:  all listing information per MLS, and current as of posting date.  Information subject to change.  Stanton Homes does not make claims to ownership of  any lot listings, but can work with homebuyers to purchase available lots and build.  Home plans to be approved on an individual basis, subject to neighborhood restrictive covenants and lot restrictions.  Ask for further information regarding any community, lot or floor plan.  Photos represent typical homes and details of each neighborhood, to help highlight different options available in the Raleigh/Triangle area.  No claim of ownership is made to homes or land pictured.  

Save

Comments (3)

Ellen Dittman
Watson Realty Corp. - Middleburg, FL
#1 Stop for NE FLA-JAX/OP 904.535.1199 (TEXT OK) r

A VA loan is a great benefit to the former military. Thanks for posting!

Jul 15, 2010 12:15 AM
James Johnson
Austin Texas Homes, LLC - Austin, TX

Penny - great info!  I'm actually working a VA loan right now and got some new information from this post!

Thanks,

James

Jul 15, 2010 08:30 AM
Stanton Homes
Stanton Homes - New Home Builder - Raleigh, NC
Design/Build Custom Home Builder in North Carolina

Bruce has been putting together some excellent information for anyone considering a VA Loan.   We also work with some terrific VA lenders in the Raleigh area.  Glad you found it helpful...

Aug 10, 2010 11:58 PM