In 1944, as part of the G.I. Bill, the Department of Veterans Affairs launched a mortgage program to help returning service members purchase a home. The VA loan program is still available and remains an important part of the benefits package for veterans and active members. The VA Loan is a mortgage loan issued by approved lenders, like First Ohio Home Finance, then guaranteed by the federal government. Since the program began, it has helped more than 20 million veterans and their families into affordable financing situations.
The VA Loan is designed specifically for those who have served, which means there are a handful of requirements. You may be eligible for a VA Home Loan if you meet one or more of the following conditions:
- You have served 90 consecutive days of active service during wartime
- You have served 181 days of active service during peacetime
- You have more than 6 years of service in the National Guard or Reserves
- You are the spouse of a service member who has died in the line of duty or as a result of a service-related disability.
If you are eligible and have completed the requirements above, you then apply to receive your Certificate of Eligibility. While you don’t need your COE in order to start the loan process, it is a very important part of your loan application. Those interested in the VA Loan aren’t required to reach any kind of certain income to use their home loan benefits; however, borrowers are expected to have stable, reliable income that will cover monthly expenses – including their new mortgage payment.
One thing that is interesting about this loan is that the VA requires that borrowers maintain an amount of income left over each month after all major expenses are paid. The excess […]