Army National Guard VA Loan Benefits, Qualifications, and Process

For those who have served or are currently serving in the U.S. military, there are various benefits available as a token of gratitude for their service. One such benefit is the VA home loan. Members of the Army National Guard are among the eligible beneficiaries of this program, designed to aid veterans in purchasing homes with advantageous terms. This article aims to provide a comprehensive overview of VA loan benefits, qualifications, and the application process for members of the Army National Guard.

Benefits of a VA Loan for Army National Guard Members

1. No Down Payment: VA loans often require no down payment. This means that qualifying members can finance 100% of the home’s value without having to save for years to accumulate a sizable down payment.
2. No Private Mortgage Insurance (PMI): Unlike many other loans, where borrowers are required to pay PMI when putting down less than 20%, VA loans do not have this requirement. This translates to significant monthly savings.
3. Competitive Interest Rates: Generally, VA loan interest rates are lower than conventional rates because of the federal government’s backing. This can result in substantial long-term savings.
4. No Prepayment Penalties: If a borrower decides to pay off the loan earlier than required, there will be no penalties for doing so.
5. Flexible Credit Requirements: While borrowers still need to meet certain credit standards, the requirements for VA loans are often more lenient than for conventional loans.

Qualifications for Army National Guard Members

To qualify for a VA loan, Army National Guard members must meet certain service requirements. Specifically:

1. Service Duration: Army National Guard members must have served at least six years in the Selected Reserve or the National Guard.
2. Discharge Status: Members should have been honorably discharged. Alternatively, they should have been placed on the retired list or transferred to an element of the Ready Reserve other than the Selected Reserve after service characterized as honorable.
3. Active Duty: If a member of the Army National Guard has served at least 90 consecutive days of active duty during wartime, they might also qualify.
4. Unremarried Spouses: The unremarried spouse of a service member who died while in service or from a service-related disability can also be eligible.
5. Other Considerations: While the VA provides guidelines, individual lenders might have their own criteria. These can include credit score minimums or income levels. It’s essential to research and consult with various lenders to understand their specific requirements.

Process for Getting a VA Loan

1. Obtain a Certificate of Eligibility (COE): Before applying for a VA loan, you need a COE as proof of eligibility. The team at Six Pillar Lending can retrieve this for you.
2. Pre-Qualification: This involves a discussion about your financial situation to understand how much you might be eligible to borrow.
3. Home Search & Offer: Once pre-approved, you can search for a home. Once you find a home you want to buy, your real estate agent will help you make an offer. If you’re not currently working with an agent, the team at Six Pillar Lending can help with a referral.
4. Home Inspection & Appraisal: The VA requires homes to meet specific property requirements. An appraisal will be needed to determine the home’s market value.
5. Underwriting: After appraisal, your lender will review all documents and finalize the loan terms.
6. Closing: Once the loan is approved, you’ll attend a closing meeting where you’ll sign paperwork, finalize your mortgage, and receive the keys to your new home.

Army National Guard VA Loans

The VA home loan program is an unparalleled benefit for Army National Guard members, providing a privileged route to homeownership with significant advantages over traditional loans. At Six Pillar Lending, our connection to this process is deeply personal. With staff members who are part of the Texas National Guard, both active and retired, we offer a unique depth of understanding and genuine empathy.

This insider perspective ensures that you’re not just guided, but genuinely supported every step of the way. Harnessing the program’s benefits with our team’s expertise, Army National Guard members can confidently pursue their homeownership aspirations. Entrust your home-buying journey to a team that truly understands the nuances and significance of the VA loan process, ensuring a seamless and successful experience. Contact us today for questions or to get the process started.