Chicago, IL (PRWEB) May 07, 2013
The U.S. Department of Veterans Affairs offers home loans for eligible service members, veterans and surviving spouses in order to help them purchase a condo or home, build a home or improve a home's energy efficiency. According to the VA benefits web site, a VA home loan is provided by a private lender such as The Federal Savings Bank, and Veteran Affairs will guarantee part of the loan so that the veteran lien holder get a better contract.
However, the length and commitment of service as well as duty status can all potentially affect eligibility to receive this type of loan. Before anything is processed, one must have good credit, sufficient income, and a Certificate of Eligibility (COE), which can be completed once determined eligible by the below requirements. A VA Form 26-1880 must be filled out in order to request a COE, according to Military.com.
To determine eligibility, read the the following points below or contact The Federal Savings Bank at (877) 788-3520 for more information. These following requirements apply to the most common set of VA home loans: purchase and cash-out refinance loans.
A serviceman or veteran must not have been discharged under dishonorable conditions.
Veterans: If one has served during one or more of the qualified wartime and peacetime periods, then one must have done so for at least 90 total days, or in some cases 181 continuous days.
Active Duty: If currently on active duty, one must have served for 90 continuous days, except in the case of the Gulf War, in which 90 total days is sufficient.
National Guard and Reserve: Eligibility requires six years of service and either an honorable discharge, retirement status, honorable transfer or continued service.
Spouse: If spouse has died while serving or from a service-related disability and the potential applicant has not remarried, he or she is eligible. In certain cases one may be eligible if the spouse was totally disabled, even if that disability was not the cause of death. A spouse could also be missing in action or a prisoner of war. Finally, one has remarried, it must have been on or after the age of 57 and on or after December 16, 2003, in order to still be eligible for a VA loan.
Note that the minimum service requirements addressed above may be waived in circumstances such as discharge due to hardship or government convenience.