OUTLET: The Virginian-Pilot, Home section

Recently, I worked with a young sailor who had just moved to Hampton Roads from California. A first-time homebuyer, he got all his financial information together quickly to speed up the process. In fact, from start to finish, it took us only two weeks to close. While the perception exists that government backed loans take longer to process, that is not always true, as was the case here.  The serviceman closed on a new home loan using his VA eligibility with zero down payment and was able to have a mortgage payment that was less than he was previously paying in rent.

Was this case a rarity?  Not at all. Here in Hampton Roads, many of our military members are learning about VA Loan opportunities as a way to purchase or refinance a home instead of renting – and with little to no money down.

What are the advantages?

There are many.  Most VA Loans require no down payment, and the rates are usually compatible with conventional loans.  Homeowners may be eligible to refinance their existing house with no appraisal or mortgage insurance required. Many service personnel are not aware they can use their VA eligibility to buy a home with no down payment, which may enable them to spend less than they do on rent.

According to the U.S. Department of Veteran Affairs, VA home loans can be used to:

• Buy a home or a condominium unit in a VA-approved project
• Install energy-related features or make energy efficient upgrades
• Purchase a manufactured home
• Refinance a non-VA loan and cash out up to 90% of the value of your home if you have VA eligibility

Interested parties can contact a VA Home Loan specialist to determine eligibility and qualifications. In the meantime, here are some basic facts.

How do I know if I’m eligible? You could well be if you fit into just one of the following categories:

• You are currently on active duty and have been for at least 90 consecutive days.
• You were honorably discharged.
• You served 90 days active duty during wartime.
• You served at least six years in the Reserves or National Guard.
• You are a spouse of a military member who was killed in the line of duty.

You may still be eligible even if you were discharged due to a hardship, medical condition or for other reasons, or are using your VA eligibility a second time, or simultaneously if you currently have a VA loan.

What is the process to obtain a VA Loan:

• Contact a certified lender to obtain your certificate. You may need a DD214 (certificate of discharge) or a statement of service (if you are active). Your lender will know right away if you are eligible or not.
• Once you have your certificate of eligibility from the VA, you can then submit VA form 26-1880 along with proof of your military service.
• Find the specific home you are interested in and sign a purchase and sale agreement.  Don’t do this until you talk to a lender, however, and are sure you qualify.

There are many ways to enjoy the American dream of home ownership. For our military families, this is one they should certainly consider.

**Brandon is an expert in VA Home loans and is the branch manager of the VA Beach office of Tidewater Mortgage Services (NMLS #609856 http://www.NMLSconsumeraccess.org).  He can be reached at (757) 605-4191 or by email at bdixon@TWMortgage.com.