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Top 3 Tips On Qualifying For a VA Loan

VA loans offer many benefits. However, not everyone qualifies for this type of financing. Here are three tips that can help determine whether you qualify.

1. Know the basic eligibility requirements

To qualify for a VA loan, you must have verifiable current or previous service in a branch of the U.S. military. Besides service in the Army, Navy, Air Force, Marines or Coast Guard, loan qualification guidelines state that you must have served for a specific period of time.

Veterans serving during times of war need only have served at least 90 days. Those serving during times of peace must have served continuously for a minimum of 181 days. Longer service requirements apply to individuals enlisting and serving after 1980, Reservists and National Guards. Anyone dishonorably discharged from service does not qualify for a VA loan.

There are other conditions which may qualify you for a VA loan. For example, someone injured while serving in the military and discharged as a result of a disability may qualify. A discharge based on a hardship may also qualify. Surviving spouses of veterans may also qualify provided the spouse has not remarried. Regardless of the circumstances, the final determination of eligibility is made by the VA.

2. Prequalify with a Certificate of Eligibility (COE)

A Certificate of Eligibility, or COE, is a document issued by the VA that confirms your service dates. It's good to have this certificate because it shows lenders that you've already pre-qualified for this type of loan. You can request a COE by registering on the VA website and completing the online form. Once verified, you can print the COE right from the website.

You can also request a COE by completing a Request for Certificate of Eligibility, also known as VA Form 26-1880. This form is available online. You'll need to complete this form and attach proof of service or discharge. All documents should then be forwarded to the VA Loan Eligibility Center.

If you don't have proof of your service, the Veterans Affairs Department may be able to assist in getting the proper documentation. Be sure to allow extra time to complete this process.

Some lenders have access to a system called ACE which they can use to check VA loan eligibility status. To obtain a COE this way, bring to the lender supporting discharge or separation documentation. There's no guarantee the lender will be able to provide this assistance, especially if you have an uncommon circumstance that may make determining eligibility difficult. If this is the case, discuss the matter over with your lender and then decide the best way to obtain the COE.

3. Enlist the help of a VA loan specialist

The guidelines for determining VA loan eligibility can be complicated. But figuring out whether you qualify is definitely worth the effort. VA loans have many advantages. They're guaranteed by the Veteran's Administration. They usually offer lowest interest rates and no down payment. And qualification guidelines are sometimes less stringent than those associated with conventional loans.

If you're interested in this type of financing, always work with a lender that has plenty of experience dealing with the VA loan process. You'll be glad you did.

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