In order to be considered for the VA home loan program, a borrower must meet military service requirements. The eligibility requirements vary depending on when the military service was completed, but can be summarized as follows:
- 90 days of active duty during wartime
- 181 days of continuous active duty during peacetime
- 6 years of service for Reservist/National Guard
For applications involving military discharges that are other than honorable, the VA determines eligibility on a case-by-case basis.
A potential VA borrower must obtain a Certificate of Eligibility (COE) before applying for a veterans' mortgage. The certificate shows the lender how much entitlement a borrower has available.
Borrowers who are eligible for a VA loan can enjoy:
- No down payment (100 percent financing)
- No private mortgage insurance (PMI)
- Relaxed qualifying standards
- Competitive interest rates
- No penalties for mortgage pre-payment
- Cash-out and debt consolidation
- Streamline rate reduction
Ultimately, the VA determines whether a person is eligible for VA home loan benefits. For more information on your own eligibility, you can contact the U.S. Department of Veterans Affairs, or speak with a VA loan professional.
2012 COLA released
Military and federal civilian retirees, survivor benefit annuitants, disabled veterans and Social Security recipients will see a 3.6 percent cost-of-living adjustment in January, their first since 2009. The 3.6 percent COLA will be effective Dec. 1 and will be reflected in January retired pay, SBP, Social Security, and VA disability compensation checks.
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Please see your local county veterans service officer if you have any questions. You can contact your local VSO at (218) 631-7617 or by e-mail at david.anderson@co.wadena.mn.us . As always, have a great week.
