Are You a Veteran of the Armed Forces?

We get a lot of Veterans who are interested in buying a home, but don’t know if they are eligible for a VA loan. There are 5 items that affect your eligibility, which are:

1. Entitlementt Code
2. Funding Fee
3. Prior VA Loans Charged to Entitlement
4. Entitlement Amount
5. Conditions

VA Entitlement Codes

In order to be eligible for a VA loan, the Veteran must fulfill the VA’s service requirements.   The entitlement code affirms your military service.  In short, to be eligible, the Veteran must complete 91 days of active duty, 4 years in the military or 6 years in the reserves.

VA Funding Fee

Most Veterans pay a one-time funding fee on the day of settlement to the Department of Veterans Affairs.  The money collected from the funding fees is used by VA to pay for loans that default and to keep VA healthy for future Veteran home buyers. If the funding fee statues shows “Exempt” then the Veteran would not have to pay the funding fee.

Prior VA Loans Changed to Entitlement

Look at section 3 on your Certificate of Eligibility (COE) if you plan to purchase a second home using your VA eligibility in addition to the home you have a VA loan on.  This section tracks your entitlement charged.  Entitlement charged is the amount of entitlement used on existing VA loans. Once you know how much VA entitlement you are currently using, then you can quickly figure out how much entitlement you have remaining for your next VA loan.

VA Entitlement Amount

VA loan allow you to put down $0; allowing the Veteran to do up to 100% financing. To figure out how much entitlement is available, follow the VA’s instructions or ask your loan officer.

Other VA Benefits

There are special benefits that the VA offers to veterans of the Armed Forces. Rebecca Foote is our VA loans specialist. Please call us at (717) 249-7500 to meet with her today. Rebecca is also available to speak to your group.