VA loans and eligibility

By: Cecilia Sherrard
VA will guarantee a maximum of 25 percent of a home loan amount up to $89,912, which limits the maximum loan amount to $359,650. Generally, the reasonable value of the property or the purchase price, whichever is less, plus the funding fee may be borrowed. All veterans must qualify, for they are not automatically eligible for the program.

VA guaranteed loans are made by private lenders, such as banks, savings & loans, or mortgage companies to eligible veterans for the purchase of a home, which must be for their own personal occupancy. The guaranty means the lender is protected against loss if you or a later owner fails to repay the loan. The guaranty replaces the protection the lender normally receives by requiring a down payment allowing you to obtain favorable financing terms. If you're thinking of purchasing a home in the Cleveland Ohio area, contact me for more information or a list of lenders specializing in VA loans. Contact Me

GENERAL RULES FOR ELIGIBILITY

You are eligible for VA home loan veteran benefits if you served on active duty in the Army, Navy, Air Force, Marine Corps, or Coast Guard and were discharged under conditions other than dishonorable after either:

  • 90 days or more, any part of which occurred during wartime, OR
  • 181 continuous days or more (peacetime)

TWO YEAR REQUIREMENT

If you:

  • enlisted (and service began) after September 7, 1980, OR
  • were an officer and service began after October 16, 1981You must have completed either:
  • 24 continuous months or more, OR
  • the full period for which ordered to active duty, but not less than 90 days (any part during wartime) or 181 continuous days (peacetime)

YOU ALSO MAY BE ELIGIBLE IF YOU:

  • were discharged for a service-connected disability, or
  • were discharged for the convenience of the government after completing at least 20 months of a 2-year enlistment, or
  • completed not less than 90 days (any part during wartime) or 181 continuous days (peacetime), and
  • were discharged because of a hardship, or were determined to have a service-connected compensable disability, or
  • were discharged or released from active duty for a medical condition which pre-existed service and has not been determined to be service-connected, or
  • received an involuntary discharge or release from active duty for the convenience of the Government as a result of a reduction in force, or
  • were discharged or released from active duty for a physical or mental condition not characterized as a disability and not the result of misconduct but which did interfere with your performance of duty
  • are an unremarried spouse of a veteran who died while in service or from a service connected disability, or
  • are a spouse of a serviceperson missing in action or a prisoner of war.

ACTIVE DUTY SERVICE PERSONNEL

If you are now on active duty, you are eligible after having served on continuous active status for at least 90 days.

When an ending date is established for Persian Gulf War service, a minimum of 181 days of continuous active duty will be required for persons who did not have wartime service.

MEMBERS OF THE SELECTIVE RESERVE

"Selected Reserve" means the Selected Reserve of the Ready Reserve of any of the Reserve components which consists of units and individuals who participate actively in paid training periods and serve on paid active duty for training each year. This includes Army Reserve, Navy Reserve, Air Force Reserve, Marine Corps Reserve, and coast guard reserve as well as Army National Guard and Air National Guard.

ELIGIBILITY MAY ALSO BE ESTABLISHED FOR:

certain United States citizens who served in the armed forces of a government allied with the United States in World War II.

  • individuals with service as members in certain organizations, such as Public Health Service officers, cadets/midshipmen at service academies, officers of National Oceanic and Atmospheric Administration, merchant seamen with WWII serviceHealth Fitness Articles, and others.

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