Our military has one of the toughest jobs to take. Our soldiers on active duty day after day. As civilians, most of us have full-time jobs. That means working at least eight hours a day, five days a week. Active duty soldiers, like us, are working full-time too. However, their full-time means serving the Army 24 hours a day, seven days a week for the whole duration of their service commitments.
Imagine working like this for the next two to six years? Imagine what great sacrifice that is for the country.
Once their length of service is over, they are discharged from service and go back to their families where they live their civilian lives. They will have to integrate themselves back into the community as ordinary citizens.
However, some veterans unfortunate to come home with a disability which they have to deal with for the rest of their lives. It can be an awful truth, some had to sacrifice a limb or an arm just in the service to their countrymen.
Qualifying for a VA Home Loan
It should be known that while not every military member is eligible for a VA home loan, a disability is never a reason for someone not to qualify for the program. Veterans, disabled or not, have equal chances in qualifying for this benefit.
First thing’s first, a veteran has to have a VA entitlement. It is necessary to prove that you have the right to take a VA Home Loan. Your VA entitlement is reflected on your Certificate of Entitlement. You can get a CEO online through the VA website. If you aren’t tech-savvy, you can ask your lender to secure it for you.
The VA Funding Fee
Perhaps, this is where it all makes a difference. All veterans who take advantage of a VA Loan must pay a VA funding fee. Such fee ensures that the benefits veterans enjoy, like the VA home loan, will continue for posterity. It cannot be waived.
The fee is a percentage of the loan. For first-time home buyers, the VA funding fee is 2.15 percent. There is an option not to pay for the fee upfront. That can be done by negotiating with the seller to pay for it or to roll it over into the mortgage so that it can be paid over time.
For a disabled borrower whose disability is related to his military service, the VA funding fee is waived. That means that you are able to save 2.15 percent of your loan amount.
What if you already have paid the funding fee and it was determined that your disability was related to your service? If this happens, you will be refunded the money. Your disability rating determines if you are qualified for such exemption.
How is the fee refunded? If you have paid for it in cash, the VA will issue you a check back. If it has been rolled into your loan and you’ve started paying for it, your principal will be reduced.
A VA loan is a wonderful program for veterans. With low to no down payment and lenient qualifications, it’s almost impossible not to qualify. Just be sure to have a COE ready. If you have more questions about the VA loan, you can talk to a VA-approved lender.
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Not all lenders will be willing to process your application as a VA loan. This is why it is important to shop for lenders. Moreover, those lenders who are willing may have different rates and terms. Shopping will allow you to compare the offers side by side.
You already have sacrificed so much for your country, you deserve to have a great home. It’s the least this nation can do to repay your noble service. Take advantage of the VA loan today.
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