VA loans are intended to help veterans and military service members purchase their own home. In order to obtain a VA loan and take advantage of this great program, there are several steps in the application process and many documents that you will need to provide. Usually, the first step to applying for a VA loan is providing a lender with proof that you are eligible to qualify for a VA loan. If you are located in the areas Knoxville, Maryville, Lenoir City, Oak Ridge, or Gatlinburg, Tennessee, and are interested in learning how to obtain a certificate of eligibility for a VA loan, contact Foundation Mortgage today. Our loan specialists can help you through the application process and help you purchase your new home.
What is a VA Loan?
VA loans are mortgages that were created for citizens who have previously served or are currently serving in the United States military. They offer great benefits to borrowers, including low interest rates and flexible terms, and a down payment and mortgage insurance are not required. VA loans are issued through private lenders, and are partly backed by the Department of Veterans Affairs, or VA, so they are considered less risky for a lender. Borrowers can use a VA loan to either purchase a new home or refinance an existing mortgage.
Essential Guide to the Certificate of Eligibility
A certificate of eligibility provides a lender with evidence that a veteran or military member meets the eligibility requirements for a VA loan, and it is typically the beginning step to obtaining a VA loan. A borrower must submit proof of their military service in order to receive a certificate of eligibility. In addition to a certificate of eligibility, a lender will also evaluate a borrower’s credit and income information. Because of this, a certificate of eligibility does not always guarantee that a borrower will receive a VA loan, but you will need the eligibility certificate to close on a home.
Requirements for a Certificate of Eligibility
In order to obtain a certificate of eligibility for a home loan, one or more of the following requirements must be met:
- You must have served 90 consecutive days of active military service during wartime
- You must have served 181 consecutive days of active military service during peacetime
- You must have served at least 6 years in the National Guard
- You must be the spouse of a military service member who has either passed away in the line of duty or passed away due to a duty-related injury or disability
A Step in the Right Direction with a Certificate of Eligibility
If you are located in the areas of Knoxville, Maryville, Lenoir City, Oak Ridge, or Gatlinburg, Tennessee and have served or are currently serving in the U.S. military, Foundation Mortgage can help get you started with a VA loan by helping you with the application process and securing a certificate of eligibility.
