(Editor’s Note: The following article is by Samantha Taylor, a Community Mentor with experience writing about the mortgage industry. Today, she explains the benefits of a VA loan for Eugene/Springfield VA qualified buyers.)

by Samantha Taylor

VA loan – How it can help combat veterans buy homes

While the war in Iraq and Afghanistan was going on, the Department of Veterans Affairs (VA) had launched an effort to reach out to combat veterans who were serving the country there. This was done in order to make sure that Veterans are aware of benefits they can get when they plan to purchase a property. The Department of Veterans Affairs regularly mailed them information regarding their eligibility for basic VA benefits. These include VA-guaranteed home loans and education benefits, etc.

Let’s take a look as to what VA loans are all about:

What is Veteran Affair (VA) Loan?

VA home loans are long term loans available at a low or zero down payment. These loans are available for the United States veterans and service persons. With the VA loan, the veterans and service persons will be able to buy, build, as well as purchase and improve a property.   

Eligibility criteria for getting a VA loan: Here are some of the eligibility criteria that the combat veterans and other active duty personnels need to satisfy in order to get the loan:

Who can qualify?

Veterans, Active Duty personnel, National Guard members as well as some surviving spouses and children of the Veterans are eligible for getting VA mortgage. 

How can you prove eligibility?

In order to get a VA loan, the veterans would require a Certificate of Eligibility. In order to get this certificate, one has to fulfill certain criteria:

• You’ll have to complete VA Form 26-1880 and request for a Certificate of Eligibility.
• You should have been honorably discharged and served in the forces for 90 days continuously during a national emergency.
• Surviving spouse of a veteran can receive this certificate provided he/she has not married again.
• An orphan of a veteran is also eligible to receive this certificate.

What will be the credit requirements?

VA loans do not have the same strict credit requirements as conventional financing. If you’ve a credit score of 620, then you should be able to get the loan. But it is always better to have good credit history for the past 12 months. You should have a stable income for the past 2 years and if there is a bankruptcy mentioned in your credit report, then it should be in a discharged status for at least two years.

What are the active duty requirements to get the VA loan?

VA Guaranteed Home Loans are also available to active duty members of the armed forces. Some of the active duty requirements are as follows:

• 181 days or more of active duty service during peacetime.
• 90 days or more of active duty service during wartime.
• You should meet the service requirements and should be currently on active duty.

Getting a VA loan for the second time

If you have paid off your VA loan, then your eligibility for getting another VA mortgage is restored. This is irrespective of the fact whether or not you own a property or you’ve disposed your earlier property. In order to restore your eligibility for getting a VA loan, you must send a completed VA Form 26-1880 to the Winston-Salem Eligibility Center. 

Thus, if you’re a veteran and want to take out a mortgage to buy a property, then you should definitely go for the VA loans. You’ll could get better terms and conditions for the mortgage and you may not have to pay any down payment to get this loan.

(Samantha Taylor is a financial writer associated with the MortgageFit Community. She participates in this mortgage community and guides people with her suggestions regarding their mortgage and financial issues.)

If you have questions about an VA Guaranteed Home Loan, please contact me, your Eugene Loan Guy. I am a Vietnam era veteran and have a VA loan myself. I would be happy to help you in your loan needs. Even if we can’t get you qualified today, I will spend the time with you getting things straightened out so you can qualify in the future. I am a Senior Mortgage Advisor with Alpine Mortgage Planning, 1200 Executive Pkwy., Ste. 100, Eugene OR 97401. You can reach me at 541-342-7576/541-221-3455 cell or by e-mail.

PLEASE NOTE: An additional benefit from the government for our military members is the extension of the First Time and Move Up Home Buyer Tax Credit for one year for anyone serving overseas for at least 90 days between Dec. 31, 2008 and May 1, 2010.

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