A VA loan is a home mortgage that is given by the United States Department of Veteran Affairs (VA). With many options that offer close to 100% financing, the VA loan is truly the best way for any member of the armed forces to fund their own home. In fact, VA loans are one of the most commonly applied among the different provisions of military loans. Let us look at five important things to know about VA military loans. There is a minimum service eligibility criterion The general rule of thumb is that a person qualifies for a VA loan if they are on active duty long enough. Specifically, the criteria for a VA loan are as follows:
- 2 years for regular service members
- 6 years of service duty for those in the National Guard
- Minimum of 90 days in active service during a war
- Minimum of 181 days in service during peacetime
Surviving spouses qualify too A spouse plays an important role in the life of an armed force member. Moreover, they make the ultimate sacrifice for the good of the whole nation. Therefore, surviving spouses qualify for military loans as well. In the past, a spouse only qualified for a VA mortgage if their husband/wife died in active military duty. Now, the spouse qualifies for the mortgage even if their military serving husband/wife dies of any cause or suffers from a condition caused by military duty for a specified period. This includes being a prisoner of war (POW) or disabled due to active duty. Know the eligible branches When we think of military loans, usually the armed forces in active duty come to mind. However, the following wings of the military service are eligible for these loans.
- Army, navy, and air force
- Coast Guard
- Marines
- Public Health Service
- National Oceanic Atmospheric Administration
- Army Cadets
- POW and missing in action( MIA)
- Midshipmen
Members with service cut short can apply In case your active duty was cut short, you need not worry. You may still be eligible for a VA loan if you meet the following criteria:
- Duty cut short due to a reduction in force
- Faced disability while on active duty and unable to serve
- Suffered certain medical conditions as prescribed in VA regulations
There are other more specific criteria too, which allow members whose service was cut short to apply for VA loans. Eligibility requirements for VA loan properties Apart from service eligibility, there are certain basic requirements for a home to receive VA funding. These include it being in a safe location with secure construction. The home should be free from pests and rot. It should have access to clean water and heating. There should be good road connectivity. A VA loan officer will inspect the property with a full list of requirements to deem if it qualifies for the mortgage.
