SECOND STEP
Once you receive your Certificate of Eligibility, you can start searching for the home of your choice with or without a Realtor. However, if you are unfamiliar with the home buying process it is advisable that you might consider getting some information on the process by perusing the site and/or contacting the professionals in your area. You will definitely find some valuable information on this site. Click "Find A Professional Now" to the left. .
FACTS YOU NEED TO KNOW
VA guaranteed loans are made through lending institutions or Mortgage Brokers to veterans who are eligible to purchase a home. There are usually purchase limits in your area and you should be able to get the lending limit from your Lender/Broker. A guaranteed loan is not a gift and the amount has to be repaid. If you fail to make your payments you may lose your home.
Receiving a certificate of eligibility does not guarantee approval of a VA loan. The veteran must still qualify for the loan from an income and credit standpoint. Financing under this program is available with slightly more favorable terms than those available to non veterans. It is possible to finance the VA funding fee, pay no mortgage insurance premiums and you may assume the mortgage of the current owner if it is assumable and you wish to do so.
If you wish to purchase a property using a VA loan you will need to certify that you intend to occupy the property as your home. Your spouse will also have to satisfy the personal occupancy requirement. You may purchase a property with someone who is neither your spouse nor a veteran; however, the guaranty is based only on the veteran’s portion of the loan. Consult with your lender or Mortgage Broker (MTGB) to determine if this is acceptable. Unlike other loans the lender is required to submit joint loans to the VA for approval before they are made.
If a veteran dies before the loan is paid off the surviving spouse or other co-borrower must continue to make the payments. If there is no co-borrower then the loan will become a part of the veteran’s estate.
You may also find additional valuable information about purchasing a home in the “Purchase” section on this site.