We’ve helped thousands of veterans and military families capitalize on the home loan benefits earned by their service. Along the way, we’ve also answered more than a few questions about the Kentucky VA Loan — and we’re always happy to help. For your convenience, we’ve compiled the answers to some of the more common questions.
VA Loan Eligibility
What is the VA Loan entitlement?
Am I eligible as a spouse of a deceased veteran?
VA loans are available to some non-military personnel, including both unmarried and remarried spouses. An unmarried spouse whose veteran died on active duty or because of a disability connected to his or her service is eligible for VA home loan benefits.
Surviving spouses who obtained a VA loan with the veteran before his or her death can also obtain a VA Interest Rate Reduction Refinance Loan, better known as a VA Streamline refinance. Surviving spouses who remarried upon or after turning age 57 and on or after December 16, 2003, may be eligible for a VA home loan. Surviving spouses who remarried before that date are no longer eligible to participate.
The spouse of an active duty member who is listed as missing in action (MIA) or a prisoner of war (POW) for at least 90 days is eligible for one-time use of the VA home loan benefit.
How can I get my Certificate of Eligibility?
Who is eligible for the VA Loan?
There are basic eligibility requirements for veterans and service members, along with members of the Reserves, the National Guard and surviving spouses.
You May Be Eligible for a VA Loan If Any One of the Following are True:
• You served 181 days during peacetime (Active Duty)
• You served 90 days during war time (Active Duty)
• You served 6 years in the Reserves or National Guard
• You are the spouse of a service member who died in the line of duty or because of a service-connected disability.
The only way to verify a veteran’s eligibility for a VA loan is to obtain a Certificate of Eligibility. Veterans can obtain their Certificate of Eligibility directly from the VA, which typically takes a few weeks. Veterans United Home Loans uses an automated system to get your Certificate of Eligibility in minutes.
It’s important to remember that not everyone eligible for a VA loan ultimately secures one. Prospective borrowers still have to satisfy credit and underwriting standards set by both the VA and the lender.
What is the difference between eligibility and prequalification?
How do basic and bonus entitlements work?
How do I restore my entitlement once I pay off my previous VA Loan?
What is 2nd Tier Entitlement?
Can I use the VA Loan for a second home or rental properties?
VA Loan Qualification
Who sets the VA Loan guidelines, the VA or my lender?
If I have bad credit, can I still get a VA Loan?
Can someone else sign on the loan with me?
What income can I use to qualify for a VA Loan?
• Base pay & allowances
• Non-military employment
• Retirement income
• Self-Employment
• Commissions
• Rental income
• A spouse’s income
• Alimony/child careTo count income from overtime work, part-time jobs, second jobs and bonuses, veterans need to show that same two-year period of stability. Veterans who are self-employed or who make a living in the building trades, doing seasonal work or working mostly on commission have some additional paperwork hurdles to face. Tax returns for the previous two years will be essential in verifying income.
How long do I have to wait after bankruptcy to get a VA Loan?
Do I need my tax returns to apply for a VA Loan?
Rates and Loan Costs
What fees should I expect to pay for my VA Loan?
What is the VA Funding Fee, and how do I calculate it?
VA Funding Fee Explained
The VA Funding Fee is paid directly to the Department of Veteran’s Affairs and is the reason they can guarantee this no-money-down loan program. This fee is paid so that VA eligible borrowers can enjoy loan benefits such as $0 down financing and no PMI payments.
VA Funding Fee Chart
The Funding Fee is calculated by looking at 5 different factors: Loan amount, loan type (Purchase or Refinance), type of service, down payment (if any) and prior VA loan use. Take a look at the charts below to see how the va funding fee varies based on these factors.
Purchase – First Time Use | ||
---|---|---|
Down Payment | Active Duty/Retired | Guard/Reserve |
$0 Down | 2.30% | 2.30% |
5-10% Down | 1.65% | 1.65% |
10% or More | 1.4% | 1.4% |
Purchase – Additional Use | ||
---|---|---|
Down Payment | Active Duty/Retired | Guard/Reserve |
$0 Down | 3.60% | 3.60% |
5-10% Down | 1.65% | 1.65% |
10% or More | 1.40% | 1.40% |
Cashout Refinance | ||
---|---|---|
VA Usage | Active Duty/Retired | Guard/Reserve |
1st Time Use | 2.30% | 2.30% |
Additional Use | 3.60% | 3.60% |
IRRL (Interest Rate Reduction Loan) | ||
---|---|---|
VA Usage | Active Duty/Retired | Guard/Reserve |
1st Time Use | 0.5% | 0.5% |
Additional Use | 0.5% | 0.5% |
How are rates for VA Loans determined?
Does the VA Loan offer adjustable rates?
Does my credit score affect my VA Loan rate?
Can I borrow more than the value of my home with a VA loan?
Can I have more than one VA loan at a time?
How complicated is VA financing?
When purchasing a home, does the VA Loan allow for cash back options?
What is the maximum VA Home Loan?
VA does not set a cap on how much you can borrow to finance your home. However, there are limits on the amount of liability VA can assume, which usually affects the amount of money an institution will lend you. The loan limits are the amount a qualified Veteran with full entitlement may be able to borrow without making a downpayment. These loan limits vary by county, since the value of a house depends in part on its location.
The basic entitlement available to each eligible Veteran is $36,000. Lenders will generally loan up to 4 times a Veteran’s available entitlement without a down payment, provided the Veteran is income and credit qualified and the property appraises for the asking price.
Can I borrow extra money to make home improvements?
Why choose the VA Loan program?
How do I get prequalified and what happens afterward?
What if I don’t have copies of my discharge paperwork?
Can I pay off a VA Loan early?
I see that VA Loans are assumable, what does that mean?
When is the VA Loan not my best option?
VA Refinancing
Can the VA Loan help me lower my monthly bills?
Can I refinance my home if I don’t currently have a VA Loan?
What types of homes can I buy with a VA Loan?
The vast majority of military buyers use their VA loan to purchase or refinance an existing single-family home. But veterans interested in purchasing a condo or building a home from the ground up can also utilize a VA loan. You can use a VA loan:
• To purchase a residence that’s owned and occupied by the veteran.
• To refinance an existing VA-guaranteed or direct loan in order to lower the current interest rate.
• To refinance in order to take out cash.
• To repair, alter or improve a residence owned by a veteran.
• To simultaneously purchase and improve a home
• To make energy-efficiency improvements in conjunction with a VA purchase or refinance loan.
• To purchase up to four one-family residential units in a condo development approved by the VA. One of those four units must be used as the borrower’s primary residence.
• To purchase a farm residence to be owned and occupied by the veteran. The property cannot be a working farm or an income-producing property.
You cannot use a VA loan to purchase vacation homes or income properties
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