Understanding The VA Home Loan Program

Joseph Caposella| NMLS# 38260

Senior Loan Officer

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VA home loan programs may be used to finance the purchase of homes, condominiums or manufactured homes, refinance an existing home loan, or install energy-saving improvements. These flexible, no-down payment loans have helped more than 21 million service members become homeowners since 1944. NJ Lenders Corp is proud to be a direct lender of VA Loans. The three main types of guaranteed home loan benefits are:

Purchase Loans

Cash-Out Refinance Loans

Interest Rate Reduction Refinance Loans

Most members of the military, veterans, reservists and National Guard members are eligible to apply for a VA loan. Spouses of military members who died while on active duty or as a result of a service-connected disability may also apply.

Active-duty members generally qualify after about 6 months of service. Reservists and members of the National Guard must wait 6 years to apply, but if they are called to active duty before that, they gain eligibility after 181 days of service.

Qualified vets need suitable credit, sufficient income and a valid Certificate of Eligibility (COE) to be eligible for a VA-guaranteed home loan. Private lenders underwrite and fund VA home loans according to VA standards. VA’s partial guaranty for these loans means that nearly 90 percent of all VA-guaranteed home loans are made with no down payment required.

If a VA-guaranteed loan becomes delinquent, the VA will work with the borrower to avoid foreclosure, including providing financial counseling and, in some cases, direct intervention with a mortgage loan servicer on the borrower’s behalf.

Whether you're an active-duty serviceperson, a veteran, a member of the National Guard, a Reservist or surviving spouse of a veteran; or if you're a cadet at the U.S. Military, Air Force or Coast Guard Academy, midshipman at the U.S. Naval Academy or officer at the National Oceanic & Atmospheric Administration, you may be eligible for a VA loan.

Call one of our knowledgeable Loan Officers today with any questions about the VA Loan Program.