Are you a former military serviceman or woman looking to purchase a home with a VA loan? If so, one of the initial steps in that process is usually obtaining a certificate of eligibility confirming to your lender that you qualify for the benefits of a VA loan. Our loan specialists at Foundation Mortgage can help guide you through the application process and secure a certificate of eligibility so you can fulfill your dream of home ownership. We serve clients in the areas of Knoxville, Maryville, Lenoir City, Oak Ridge, and Gatlinburg, Tennessee. Contact us today for a consultation.
VA Loan Basics
A VA loan is a mortgage that comes with many benefits and is intended for people that currently serve or have served in the United States military. These loans are partially backed by a division of the government known as the Department of Veterans Affairs, (VA), and are issued by private lenders. Since a portion of a VA loan is insured by the U.S. government, it poses less risk to lenders because they are guaranteed some of the money back if the borrower is unable to make payments. A VA loan does not require a down payment or monthly mortgage insurance premiums, it also has lower interest rates and has flexible terms. A borrower can use a VA loan to purchase a new property, or to refinance a current mortgage.
What Is a Certificate of Eligibility?
Obtaining a certificate of eligibility is typically the starting point to getting a VA loan. It serves as proof to the lender that a veteran meets the VA loan requirements. It is important to note that in addition to acquiring a certificate of eligibility, lenders will also analyze a borrower’s income and credit factors. Therefore, a certificate of eligibility will not necessarily guarantee a borrower will get a VA loan, however, lenders will not be able to securely close on a home without one. In order to receive a certificate of eligibility, a borrower must submit proof of their military service. The following are a list of requirements that must be met in order to qualify for a certificate of eligibility:
- You must have served in active duty for 181 days during peacetime
- You must have served in active duty for 90 days during war time
- You must have served 6 years in the National Guard or Reserves
- Your must be a spouse of a servicemember who was killed in the line of duty
Getting Help With a VA Loan Certificate of Eligibility
If you served our country and are looking to purchase or refinance a home and want to take advantage of the great opportunities that a VA loan can offer, contact Foundation Network today. We can help you begin the application process and help you obtain a certificate of eligibility in the areas of Knoxville, Maryville, Lenoir City, Oak Ridge, and Gatlinburg, Tennessee. We will help you find the right loan and home for your situation.