You can use your VA benefit for a zero percent down payment on a home or investment property.
I’ve helped a lot of Veterans, spouses of Veterans, and active service members reach for the good life by helping them to finance a loan for their dream home or for an investment property.
Below is information and links to help you understand the VA loan process. If you have any other
questions please don’t hesitate to contact me today.
Through the Department of Veteran Affairs you or your spouse can get a loan guarantee that will help you to buy a home or investment property or afford improvements on an existing home.
The Department of Veteran Affairs does not provide the loan. It guarantees part of the loan allowing you to get a zero percent down payment on a home loan or investment property (if you plan on living there).
Who Qualifies? According the DVA:
- Active Duty Service Members.
- Veterans (must provide a DD214 form and a copy of your social security card).
- Surviving spouse of a service member who died while on active duty (must provide DD1300
form and a copy of your marriage certificate). - Surviving spouse of a Veteran who dies as a result of military service (must provide a copy of the Veteran’s DD214 form, death certificate, and marriage certificate).
- Current National Guard or Reserve Member who has never been activated Federal active
service. - Discharged member of the National Guard who has never been activated for Federal active
service. - Discharged member of the Selected Reserve who has never been activated for Federal active
service.
What do I need to qualify for zero percent down on a loan?
If you plan on purchasing a home or investment property (and you plan on living there) you will need a Certificate of Eligibility or COE. This lets the lender know that you qualify for a VA loan.
How do I get the COE?
You will need to gather the relevant documents. You can ask your lender help you to obtain your COE or you can apply online at the Department of Veteran Affairs.
However, if you are the surviving spouse of a Veteran you will need to apply by mail.
What if I don’t have the proper forms?
You can request a copy of the forms you need to get your certificate of eligibility at the DVA.
How much will I qualify for?
Your COE will include an entitlement figure. However, this is not the loan amount.
It is the amount that the government is willing to guarantee towards your loan.
The VA calculates your affordability 2 ways, one in the transitional ways of lending which is the debt ratio. The debt ratio can be as high as 60% (compared to 41% on FHA and 38% for conventional loans).
The other way they calculate what you qualify for is by calculating net income – expenses for living and yes they have a chart per region on utilities and family support expenses. So you have to have a certain amount left over after expenses.
That’s called disposable or dispensable income.
What if I’ve used my VA home loan benefit before, can I use it again?
Yes.
You can use your VA home loan benefit again if you’ve paid off your previous loan and gotten rid of the property. The VA will have you fill in a form asking for a 1 time re-establishment of entitlement.
The best way to find out whether your full benefit was restored is to get a certificate of eligibility from the VA. See our VA page for a copy of the form.
If you have more questions you can contact me for your free 90 minute consultation.