Tuesday, May 23, 2017

What Happens to my VA Loan if I Die?

If you are a United States service member or a retired service member and need a home loan, the VA offers an excellent choice. Private lenders provide VA loans, and they are guaranteed by the Department of Veterans Affairs. If you qualify for a VA loan, you need to know how the process works.

Eligibility for a VA Loan
If you are a member of any branch of the U.S military, you should be eligible for a VA loan. Spouses of serviceman who were killed in action or have a disability related to service-related injury also qualify for the loan. You are eligible if you have served actively for 90 consecutive days during wartime or if you have served 181 days during peacetime. If you have more than 6 years of service in the National Guard or Reserves, you will qualify.

What is Required to be Approved?
To get a VA loan, you will need a certificate of eligibility to prove that you qualify. This certificate will tell the lender how long you served in the military. You can obtain this certificate online, download it and mail it in.

Advantages of a VA Loan
One of the biggest advantages of this loan is that you are not required to have a down payment. The VA insures 100% of the loan. You are also not required to have private mortgage insurance, which will make your monthly payment amount lower. You do usually need to pay a one-time funding fee, but it can be rolled into your loan. If you cannot make payments on the loan, the VA will try to negotiate with the lender to come up with a solution.

Qualifying for a VA Loan
There is not a minimum credit score requirement; however, most lenders want you to have a score of at least 620. If it is any lower than that, you will pay a higher interest rate. You will also need to show proof of income to show that you make enough money to pay the loan. You must use it for a primary home; you cannot use it for a vacation or investment home.

Applying for a VA loan
You can get pre-approved for a VA loan online with a VA approved lender. You will need to provide your certificate of eligibility along with additional paperwork required by the lender. After you are approved, you can sign the paperwork. An appraisal will be ordered. If everything looks good, you can close the deal.

What Happens if I Die?
If the military member dies before the loan is paid, the spouse or other individual can keep making the payments. If a co-borrower is not available, the veteran’s estate will be obligated for the loan.

A VA loan is a great way for a person who has served in the military to be able to buy a home. You will not need a down payment, and you do not need perfect credit. You can apply with a lender who accepts VA loans, and you will be on your way to owning a new home.

Mortgage Originator Jimmy Vercellino, specializing in VA loans, helps veterans use their VA loan benefit to their greatest advantage. For more details call us at 619-350-1951 or visit our site http://sandiego.valoansforvets.com/

The views expressed here are those of the individual author and do not necessarily represent those of First Choice Bank (NMLS #: 177877) and First Choice Loan Services Inc. (NMLS #: 210764), 959 South Coast Drive, Costa Mesa, CA 92626. Equal Housing Lender. www.fcloans.com/disclaimer/