How to qualify for a VA home loan, and the max VA loan amount in Illinois
Being prior military, I took advantage of using my VA loan for my first home purchase back in 2002. If you are currently in the military or prior military and meet the eligibilty requirements, then using your VA is a great option to get you into a home. VA home loans are typically No money down for first-time home buyers, however there is a funding fee required by law that is typically 2.15%. This small funding fee was established to enable the veteran to contribute to the cost of this benefit, and thereby reduce the cost to the taxpayers. There are situations in which one can be exempt from the funding fee, which this information can be found through a authorized VA rep.
As of 2010, the lending limits in Illinois for a single-family home is up to $417,000 and the Max Guarantee is up to $1,000,000.
If you served your country honorably, then you don't want to pass up the many benefits with the VA loan program.
In order to get a VA loan approved there are a few thing here that need to be covered. You must be able to obtain a valid Certificate of Eligibility, that states that you are qualified to receive the VA loan (qualifications are below). The loan typically must be for a house, townhouse, condominium or other governmentally approved reason. You must intend to occupy the house within a reasonable time period after closing. Considering that the VA has backed the loans of individuals with no established credit in the past, your credit should be satisfactory, and the income you and your spouse receive must be established and adequate to pay the monthly mortgage.
Below, are the General rules of eligibility regarding a VA loan located on www.valoans.com. For more detailed information please visit that site.
GENERAL RULES OF ELIGIBILITY
You are eligible for VA home loan veteran benefits if you served on active duty in the Army, Navy, Air Force, Marine Corps, or Coast Guard and were discharged under conditions other than dishonorable after either:
* 90 days or more, any part of which occurred during wartime, OR
* 181 continuous days or more (peacetime)
TWO YEAR REQUIREMENT
* enlisted (and service began) after September 7, 1980, OR
* were an officer and service began after October 16, 1981
You must have completed either:
* 24 continuous months or more, OR
* the full period for which ordered to active duty, but not less than 90 days (any part during wartime) or 181 continuous days (peacetime)