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Empowering Our Guardians: VA Home Loans for National Guard and Air National Guard Members

As valued members of our national defense, individuals in the National Guard and Air National Guard have unique benefits available to honor their service. One such advantage is access to VA Home Loans, designed to aid service members in purchasing their dream homes. This article serves as a detailed guide for National Guard and Air National Guard members to navigate the ins and outs of VA Home Loans, ensuring a smooth homebuying experience.

Reservist VA Home Loan Eligibility Criteria

Before diving into the process, it’s crucial to understand the eligibility criteria for National Guard and Air National Guard members.

 

Service Requirement:

  • National Guard members need to serve at least six years.
  • Air National Guard members must fulfill a minimum of six years of service.

 

Certificate of Eligibility (COE):

  • A COE is required to apply for a VA Home Loan. It can be obtained through the eBenefits portal on the VA website or by submitting VA Form 26-1880.

 

Credit and Income:

  • While the VA doesn’t set a credit score requirement, our lenders usually seek a score of 580 or higher.
  • Stable income and a reasonable debt-to-income ratio are also necessary.

 

Benefits of VA Home Loans

VA Home Loans offer a plethora of benefits:

 

  • No Down Payment: Eligible members can finance 100% of the home’s value, eliminating the need for a down payment.
  • No Private Mortgage Insurance (PMI): Unlike conventional loans, VA Home Loans do not require PMI, reducing monthly payments.
  • Competitive Interest Rates: Due to government backing, VA loans typically offer lower interest rates compared to conventional loans.
  • No Prepayment Penalty: Borrowers can pay off the loan earlier without facing any penalties.

 

Reservist VA Home Loan Application Process

Navigating the application process is straightforward with these steps:

 

  1. Obtain Your COE: Secure your Certificate of Eligibility through the VA’s eBenefits portal.
  2. Prequalify for a Loan: Find a VA-approved lender and get prequalified to understand how much you can borrow.
  3. Find a Home: Once prequalified, start your home search and sign a purchase agreement.
  4. Apply for the VA Home Loan: Complete the loan application with your lender, who will then order a VA appraisal.
  5. Close on Your Home: Once the loan is approved, close the deal and become a homeowner!

 

VA Loan Funding Fee and Closing Costs

While VA Home Loans do not require a down payment or PMI, there is a funding fee:

 

  • Funding Fee: The VA funding fee is a one-time payment that can be rolled into the loan amount. It varies based on the down payment and type of service. National Guard members may have a slightly higher fee than active-duty members.
  • Closing Costs: While the seller can pay some closing costs, the buyer may still be responsible for certain fees and charges.

 

VA Home Loan Refinancing Options

VA Home Loans also offer refinancing options for those looking to lower their interest rates or tap into home equity:

 

 

VA Home Loans for National Guard and Air National Guard Members

VA Home Loans provide an invaluable resource for members of the National Guard and Air National Guard, paving the way for homeownership with exclusive benefits. By understanding eligibility, leveraging the benefits, and navigating the application process effectively, our guardians can secure their dream homes as a token of the nation’s gratitude for their service.

If you’re a member of the National Guard or Air National Guard and you’re ready to find out more about your VA Home Loan benefits, contact one of our mortgage experts today. You may be speaking to a fellow member of the Guard!

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