Providing personal online mortgage service since 1987, a California home loan specialist

Rand Miller

(800) 644-5363

An on line home loan can be easy, just complete the online application, fax in some paperwork and get ready for the funding.

A VA mortgage loan was the 1st no downpayment loan available. It is a good benefit for faithful service.

A veteran loan is most commonly used to purchase a home with no downpayment.

A veteran home loan can be easy, just complete the online application, fax in some paperwork and get ready for the funding.

The key to a good VA loan is low cost with a low interest rate. The seller usually pays the most of the closing costs on a VA purchase loan.

The VA streamline loan is an excellent way to lower your interest rate on a refinance with minimal cost.

A VA house loan requires a strict appraisal, to insure the veteran purchases a home in good shape.

A refinance VA loan can be a VA streamline loan or a conventional loan. We will help you compare the details of each program.

VA Loan - Frequently Asked Questions

  1. May a veteran pay off a VA loan before it becomes due?

    [ANSWER] Yes. A VA loan may be partially paid at any time without penalty. Partial payments may not be less than 1 monthly installment or $100, whichever is less.

  2. If a veteran dies before the loan is paid off, will the VA guaranty payoff the balance of the loan?

    [ANSWER] No. The surviving spouse or other co-borrower must continue to make the payments. If there is no co-borrower, the loan becomes the obligation of the veteran's estate. Protection against this may be obtained through mortgage life insurance, which must be purchased from private insurance sources.

  3. Does having a VA loan limit a veteran's right or ability to sell the property?

    [ANSWER] No. A veteran may sell the property to a veteran or a non-veteran at any time. However, if the loan was closed after March 1, 1988, and it will be assumed, the qualifications of the assumer must be reviewed and approved by the lender or VA.

  4. When a veteran sells the property to someone who will assume the existing VA loan, is the veteran released automatically from personal liability for repayment of the loan?

    [ANSWER] No. If the loan was closed after March 1, 1988, the lender or VA must be notified and requested to approve the assumer and grant the veteran release from liability. If the loan was closed prior to March 1, 1988, the loan may not be assumed without approval from VA or the other lender. However, the veteran is strongly urged to request a release of liability from VA.

  5. How may a veteran obtain a release of liability from VA?

    [ANSWER] By having the buyer assume all of the veteran's liabilities on the VA loan, and by having VA or the loan holder approve the buyer and the assumption agreement. (If the loan was closed prior to March 1, 1988, the application forms for a release of liability must be requested from the VA office that guaranteed the loan. If the loan was closed on or after March 1, 1988, then the application forms must be requested from the lender to whom the payments are made.)

  6. What can a veteran do who has lost his or her original discharge papers and does not have a legible copy?

    [ANSWER] The veteran should obtain a Certificate in Lieu of Lost or Destroyed Discharge. Any VA Veteran's Benefits Counselor at the nearest VA office will assist a veteran in obtaining necessary proof of military service.

  7. Does a Veteran's home loan entitlement expire?

    [ANSWER] No. Home loan entitlement is generally good until used. However, the eligibility of service personnel is only available so long as they remained on active duty. If they are discharged or released from active duty before using their entitlement, a new determination of their eligibility must be made, based on the length of service and the type of discharge received.

  8. How much entitlement does each veteran have?

    [ANSWER] Max loan amount of $203,000

  9. Does VA home loan entitlement provide cash to the veteran?

    [ANSWER] No. The amount of entitlement relates only to the amount VA will guarantee the lender against loss.

  10. Can a veteran get used entitlement back to use again?

    [ANSWER] If you have used all or part of your entitlement, you can get that entitlement back to purchase another home if the following conditions for "restoration" are met:

    • The property has been sold and the loan has been paid in full, or
    • A qualified veteran-transferee (buyer) must agree to assume the outstanding balance on the loan and agree to "substitute" his or her entitlement for the same amount of entitlement you originally used to get the loan. The buyer must also meet the occupancy and income and credit requirements of the law. 
    • Restoration of entitlement is not automatic. You must apply for it by completing and returning VA Form 26-1880 to any VA regional office or center. Application forms for substitution of entitlement may be requested from the VA office that guaranteed the loan.

  11. May several veteran's use their entitlement to acquire property together?

    [ANSWER] Yes. The guaranty is based on each veteran's interest in the property, but the maximum loan still may not exceed $203,000, or the maximum of the guaranty.

  12. If both a husband and wife are eligible, may they acquire property jointly and so increase the amount that may be guaranteed?

    [ANSWER] They may acquire property jointly, but the maximum loan still may not exceed $203,000, or the maximum of the guaranty.

  13. May a veteran join with a non-veteran to obtain a VA loan?

    [ANSWER] Yes, but the guaranty is based on the veteran's portion of the loan. The guaranty cannot cover the non-veteran's part of the loan. This does not apply to a veteran and spouse when the spouse is not a veteran. (Consult your lenders to determine whether they would be willing to accept applications for joint loans of this type.)

Need More VA Loan Information?

Veterans seeking more information may review our Veteran Loan page or call (800) 644-LEND and ask for Sgt. Rand Miller who specializes in helping Veterans finance their dream homes.

To learn more about the below mentioned VA Loans review our Veteran Loan page:

We can help you choose the best loan for your situation. When you need a fast VA loan, regardless of your situation, either call us, email us or Apply Online. You can count on us to give you straight answers to the tough questions regarding your real estate financing needs.

Veteran Loan Details

The U.S. Department of Veterans' Affairs was established with the passage of the original GI Bill in 1944. Included in the many provisions of that bill was a program to assist returning World War II veterans with the purchase of a new home. The program has been expanded from time to time to include other veterans since then. The VA has assisted nearly 300,000 loans to veterans since that time.

The assistance provided is a guarantee of a portion of a mortgage loan used to finance the purchase of a primary home. Each eligible veteran (see eligibility below) is granted a dollar amount of entitlement up to a maximum of $50,750. That entitlement can be used in place of a down payment on a home, which can result in a loan for 100% of the purchase price. The maximum amount of a VA-Guaranteed loan is $203,000, thus the VA provides a 25% assistance to a purchase. The guarantee is insurance against loss from default to private lenders such as mortgage bankers, savings and loans or banks.

WHO IS ELIGIBLE - Veterans with active duty service, that were not dishonorable, provided they served a minimum amount of active duty time as follows: 

World War II
                     Dates of Service:   9/16/40 to 7/25/47
                     Minimum Service     90 Days
                     Time:

Peacetime
                     Dates of Service:   7/26/47 to 6/26/50
                     Minimum Service     181 Continuous Days
                     Time:

Korean Conflict
                     Dates of Service:   6/27/50 to 1/31/55
                     Minimum Service     90 Days
                     Time:

Post Korean
                     Dates of Service:   2/1/55 to 8/4/64
                     Minimum Service     181 Continuous Days
                     Time:

Vietnam Conflict
                     Dates of Service:   8/5/64 to 5/7/75
                     Minimum Service     90 Days
                     Time:

Post Vietnam
                     Dates of Service:   5/8/75 to 9/7/80
                     Minimum Service     181 Continuous Days
                     Time:

Post Vietnam -
Enlisted Grades
                     Dates of Service:   9/8/80 to 9/1/90
                     Minimum Service     2 Years
                     Time:

Post Vietnam -
Officer Grades
                     Dates of Service:   10/17/81 to 8/1/90 (Gap from
                     Minimum Service     9/7/80 to 10/17/81)
                     Time:               2 Years

Persian Gulf Active military, and reservists or national guardsmen who where activated, who served at least 90 days and were discharged or deactivated honorably, are eligible.

Selected Reservists:
Members of the Selected Reserve, including National Guard, who are not otherwise eligible and who completed 6 years of service and been honorably discharged or have completed 6 years of service and are still serving may be eligible. This expanded eligibility for reservists will expire on 10/28/99, and use of this home mortgage program by this group requires payment of a higher guarantee fee.

Spouses:
Un-remarried, Surviving Spouse:
Spouses of veterans who died on active duty or as a result of injuries received during active military duty, are fully eligible for VA loan benefits if their deceased spouse would have been eligible. This eligibility ends upon remarriage. POW/MIA Spouses, Spouses of Prisoners-of-War and veterans still considered Missing-in-Action are also eligible based on the eligibility of their POW/MIA spouse.

Veterans may contact any VA office or an authorized VA lender for additional information or an exact determination of their eligibility.

LOAN PROGRAM DETAILS

FIXED RATE ONLY - At the present time the only VA loan available is a Fixed Rate, fully amortizing loan with a term of 10, 15, 20, 25 or 30 years. Until September 30, 1995, VA also offered an Adjustable Rate Mortgage (ARM) loan, but their authority to continue that option expired and was not renewed by Congress.

MAX LOAN $203,000 - The loan may be for the purchase of a new home, up to a maximum loan of $203,000 with not less than 25% guarantee entitlement ($50,750). VA loans may also be obtained for refinance on an existing home, but the entitlement available for a refinance loan is reduced to $36,000 and the maximum Loan-to-Value may not exceed 90%.

ONLY "1" VA LOAN AT A TIME - No veteran may have more than one VA loan at any one time. If an existing home was purchased with a VA loan, it must be repaid in full before a new home may be purchased by reusing, or restoring, VA home loan benefits. In addition, no veteran may continue to own more than two homes that were acquired with a VA loan at any one time. For instance, if a veteran purchases a first home with a VA loan, repays that loan, purchases a second home and repays that loan in full, either the first or second home must be sold before a third home can be purchased with a VA loan.

FULLY ASSUMABLE - VA loans are also fully assumable by a buyer who meets all of the minimum credit qualifications required by VA. If the assuming buyer is a veteran, his/her entitlement may be substituted for the selling veteran resulting in restoration of entitlement. If the assuming buyer is not a veteran, the entitlement used to purchase the home remains with the home and is not restored.

HOME TYPES - A VA loan may be used for the purchase of a 1-4 Family, detached home, or a 1-Unit home in a VA-Approved Planned Unit Development or Condominium project. All homes acquired with a VA loan must be occupied by the veteran as their primary home.

VA FUNDING FEES - Each veteran must pay a basic VA Funding Fee (VAFF) of 2.00% of the loan amount to the Department of Veterans' Affairs for the use of the program. This fee can be reduced to 1.50% with a cash down payment between 5-9.99% and to 1.25% with a cash investment of 10% or more. Eligible reservists are required to pay an additional 0.75% (2.75% total), reduced by .50% or .75% with a cash down payment as noted above.

INTEREST RATE REDUCTION REFINANCE - VA loans are eligible for an Interest Rate Reduction Refinance with the payment of a 0.50% VAFF. Veterans who are using their entitlement for a second or subsequent time are required to pay a VAFF of up to 3.00%, depending on their cash down payment.

SERVICE CONNECTED DISABILITY - All Funding Fees may be added to the loan and financed or paid in cash, provided the financing of that fee does not result in a loan amount above the maximum $203,000. Certain veterans, generally those with service connected disabilities, are exempt from payment of a VA Funding Fee on all loan transactions.

Other costs associated with a VA loan are those that are typical or normal for any home mortgage loan. They may include, but not limited to:

No commissions, brokerage or "buyer broker" fees may be charged to a veteran buyer.

Contact us Today!

Veterans seeking more information regarding the below mentioned programs may review our Veteran Loan page or call (800) 644-LEND and ask for Sgt. Rand Miller who specializes in helping Veterans finance their dream homes.

A Veterans have a variety of programs to choose from:

We can help you choose the best loan for your situation. When you need a fast VA loan, regardless of your situation, either call us, email us or Apply Online. You can count on us to give you straight answers to the tough questions regarding your real estate financing needs.