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Frequently Asked Questions for Veterans

What kind of loan is best for me?

Please review The National's variety of different Loan Programs to find a loan that best fits your needs.

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What are the 6 Steps to a VA Loan?
  • Apply for a Certificate of Eligibility. A Veteran who does not have a certificate can obtain one by filling out a VA1880 form. Call one of our representatives for assistance.
  • Find the property suitable for your needs and sign an agreement to purchase.
  • Apply for a loan with a VA Approved Lender.
  • Property Appraisal is ordered by the lender, through V.A.'s assignment process.
  • Property's reasonable value is determined.
  • If application is approved, close the loan and move in.

To obtain a VA loan approval, the law requires that the applicant must be an eligible veteran who has available VA entitlement. The loan must be for an eligible purpose and the veteran must occupy or intend to occupy the property as a home within 60 days after closing the loan. The veteran must be a satisfactory credit risk. The income of the veteran and spouse, if any, must be shown to be stable and sufficient to meet the mortgage payment, cover the costs of owning a home, take care of other obligations and expenses, and have enough left over for family support.

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What are some some of the eligibility issues?

Veterans with active duty service, or honorably discharged from World War II to the present, are eligible. You must have 90 days of service within one of the following periods.

  • World War II — September 16, 1940 to July 25, 1947
  • Korean Conflict — June 27, 1950 to January 31, 1955
  • Vietnam — August 5, 1964 to May 7, 1975
  • Persian Gulf Conflict — August 2, 1990 to date

Veterans and active duty personnel serving during peacetime must have more than 180 days of service.

Enlisted Veterans with a BASD after September 7, 1980 must have served at least 2 years.

Veteran Officers with a BASD after October 16, 1981 must have served at least two years.

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Are there any benefits I should be aware of?

More than 29 million veterans and active duty personnel are eligible for VA financing. Even though many veterans have already used their loan benefits, it may be possible for them to buy homes again with VA financing using remaining or restored loan entitlement.

  • Most important consideration, no down payment is required in most cases.
  • Loan maximum may be up to 100 percent of the VA-established reasonable value of the property. Subject to secondary market requirements.
  • Flexibility of negotiating interest rates with the lender.
  • No monthly mortgage insurance premium payment to pay.
  • Limitation on buyer's closing costs.
  • An appraisal which informs the buyer of the property value.
  • Thirty year loans with a choice of repayment plans:
    • Traditional Fixed Payment (constant principal and interest; increases or decreases may be expected in property taxes and homeowner's insurance coverage);
    • ARM programs where payments adjust annually.
  • On most loans for new houses, construction is inspected at appropriate stages to ensure compliance with the approved plan, and a 1-year warranty is required from the builder that the house is built in conformity with the acceptable 10-year warranty plan, only a final inspection may be required, depending on local building authority.
  • An assumable mortgage subject to VA approval of the borrower's credit.
  • Right to repay loan without penalty.
  • VA performs personal loan servicing and offers financial counseling to help veterans avoid losing their homes during temporary financial difficulties.

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What are some examples of how a loan may be used?

VA Loans may be used for the following purposes:

  • To buy a home, including a townhouse or condominium unit in a VA-approved project.
  • To build a home.
  • To refinance an existing home loan up to 90 percent of the VA-established reasonable value or to refinance an existing VA loan to reduce the interest rate.

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How much will a loan cost me?

The Veterans Administration charges a VA funding fee that may either be financed into the loan or paid in cash at closing. The VA funding fee amount is determined by the capacity of military service, whether you are using your entitlement for subsequent use, or you are refinancing an existing VA loan.

To determine the VA funding fee percentage that applies to your loan please contact us. Some veterans with a disability may be exempt from this funding fee.

Reasonable closing costs may be charged by the lender. These costs may not be included in the loan. Closing costs may vary among lenders and also throughout the nation because of differing local laws and customs. The allowable costs that may be charged to the veteran purchaser, or the seller. Prepaid expenses may also be paid by either party. These are costs to establish the escrow on insurance policy on the home, property taxes and any prepaid interest. No commissions, brokerage fees or "buyer broker" fees may be charged to the veteran.

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What if I have had a loan before?

You can restore your entitlement by meeting the following conditions:

  • The property has been sold and the loan has been paid in full, or
  • A qualified veteran buyer must agree to assume the outstanding balance on the loan and agree to "substitute" his or her entitlement you originally used to get the loan. The buyer must also meet the occupancy and income and credit requirements of the law.

It is important to note that restoration of entitlement is not automatic. You must apply by submitting VA Form 26-1880 (Request for Certificate of Eligibility Form) to VA or your lender.

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What are some other financing options that may interest me?

If for some reason you cannot be qualified for the VA Loan Program due to lack of entitlement, loan amount requirement, etc., we do offer other loan programs that may fit your needs. Please contact us.

The National Mortgage Department's parent company bank does offer In House Financing. Jumbo loan programs that allow for larger loan sizes than what secondary market programs would allow for. We can also offer 3 or 5 year Balloon Mortgages, Second home Loans, Investment Property Loans, and Commercial Loans.

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