Our aim at PREMASS is to guide you through the process of purchasing a home through the Veterans benefits you deserve. We hope you will use all the tools available and would also like to thank you for the contribution you made to this great country.
FIRST STEP
If you are a Veteran and wish to purchase a home then you should first obtain a Certificate of Eligibility. Your Certificate of Eligibility is the document provided by the Veterans Administration (VA) that identifies your benefit entitlement amount. This is done by completing the VA Form 26-1880 and submitting it along with proof of military service. You should also have a copy of your DD214 - Certificate of Release or Discharge from Active Duty. The latter is the standard separation document from the United States Armed Forces.
If you are now on regular active duty and have not been previously discharged from active duty service, you must submit a statement of service which includes the name of the issuing authority (base or command), and is signed by or at the direction of an appropriate official.
If you are unsure if you qualify for a VA loan, please check out this website.
WHAT DOES IT DO?
The Certificate of Eligibility will indicate the amount the US Government will guarantee for you. This entitlement amount may be multiplied by four to arrive at a figure before you are required to have a down payment.
So if you have the maximum standard entitlement of $36,000 you would multiply that figure by 4 to come up with the maximum home you can purchase before a down payment is required, or $144,000. In other words, the government would guarantee the loan by a maximum of 25% of the balance. If you are purchasing a home for more than the “4 times” figure, then you would have to provide a down payment to cover the difference.
The Certificate of Eligibility would be reduced if entitlement has been used before to get a VA loan. The amount of remaining entitlement can be determined by subtracting the amount of entitlement used from the current maximum available entitlement of $36,000.