Greetings, dear readers! If you’re a member of the National Guard and you’re looking for a way to finance your dream home, you’re in the right place! In this article, we’ll be discussing everything you need to know about National Guard VA home loans. From benefits to requirements and FAQs, we’ve got you covered. So, let’s dive in!
Introduction
VA home loans are one of the most popular ways for veterans and active-duty service members to buy or refinance their homes. But did you know that members of the National Guard can also qualify for VA home loans? Yes, you heard that right! National Guard members who meet the eligibility criteria can enjoy the same benefits that veterans and active-duty service members do.
In this section, we’ll give you an overview of how National Guard VA home loans work, who’s eligible, and what benefits you can expect.
What is a National Guard VA home loan?
A National Guard VA home loan is a type of mortgage loan that’s backed by the U.S. Department of Veterans Affairs (VA) and is designed to help members of the National Guard buy, build, or refinance their homes. Like other VA home loans, National Guard VA home loans offer several benefits, such as no down payment, no private mortgage insurance (PMI), and competitive interest rates.
Who’s eligible for a National Guard VA home loan?
To be eligible for a National Guard VA home loan, you must meet certain requirements. Generally, you must have served at least six years in the National Guard or Reserves and meet one of the following criteria:
Criteria |
Requirement |
|---|---|
Active duty |
Served at least 90 consecutive days of active service during wartime or at least 181 days of active service during peacetime. |
Immediate member |
You’re the surviving spouse of a service member who died in the line of duty or as a result of a service-connected disability, or you’re a service member who’s missing in action or a prisoner of war. |
Retired |
You’re retired from the National Guard or Reserve and have completed at least 20 years of service. |
If you meet these requirements, you’ll also need to obtain a Certificate of Eligibility (COE) from the VA to prove that you’re eligible for a National Guard VA home loan.
What are the benefits of a National Guard VA home loan?
Now that you know what a National Guard VA home loan is and who’s eligible, let’s take a closer look at the benefits:
- 💰 No down payment: You don’t have to make a down payment on the home if the purchase price doesn’t exceed the appraised value.
- 💰 No PMI: Unlike other conventional loans, you don’t have to pay for private mortgage insurance.
- 💰 Competitive interest rates: VA home loans typically have lower interest rates than other conventional loans.
- 💰 Lower closing costs: The VA limits the amount you can be charged for closing costs.
- 💰 Easier to qualify: VA home loans have more flexible credit and income requirements than other conventional loans.
- 💰 Ability to refinance: You can refinance a National Guard VA home loan to get a lower interest rate or to convert an adjustable-rate mortgage (ARM) to a fixed-rate mortgage.
- 💰 Lifetime benefits: Once you’re eligible for a VA home loan, you’re eligible for life.
National Guard VA Home Loan Requirements
Now that you know the benefits of a National Guard VA home loan, let’s dive into the requirements. In this section, we’ll explain the credit and income requirements, property eligibility, and other important factors you need to know before applying for a National Guard VA home loan.
Credit and Income Requirements
One of the main advantages of a National Guard VA home loan is that it has more flexible credit and income requirements than other conventional loans. Generally, you’ll need a credit score of at least 620 to qualify for a VA home loan, but some lenders may have lower requirements.
You’ll also need to show that you have a stable income and that the loan payments won’t exceed 41% of your monthly income. If you have a higher debt-to-income ratio, you may still be able to qualify for a VA home loan, but you’ll need to provide additional documentation and meet other requirements.
Property Eligibility
Before you apply for a National Guard VA home loan, it’s important to know the property eligibility requirements. Generally, the property must:
- 💰 Be your primary residence
- 💰 Be in good condition and habitable
- 💰 Meet minimum property requirements set by the VA
- 💰 Not be a co-op or manufactured home (unless it meets certain requirements)
It’s also important to note that the VA imposes loan limits on National Guard VA home loans, which vary by county. In 2021, the loan limit for most counties is $548,250, but it can be higher in high-cost areas.
Other Factors
Other factors that may affect your eligibility for a National Guard VA home loan include:
- 💰 Your length of service: To be eligible for a VA home loan, you must have served at least six years in the National Guard or Reserves, unless you’re called to active duty before the six-year mark.
- 💰 Your discharge status: To be eligible for a VA home loan, you must have been discharged under conditions other than dishonorable.
- 💰 Your debt-to-income ratio: As we mentioned earlier, your debt-to-income ratio must be within the VA’s guidelines to qualify for a National Guard VA home loan.
- 💰 Your COE: To prove that you’re eligible for a National Guard VA home loan, you must obtain a Certificate of Eligibility (COE) from the VA.
National Guard VA Home Loan FAQs
1. Can National Guard members who’ve never been deployed qualify for a VA home loan?
Yes, National Guard members who’ve never been deployed can still qualify for a VA home loan as long as they meet the eligibility criteria.
2. Can I use a National Guard VA home loan to buy a second home or investment property?
No, National Guard VA home loans are only for primary residences.
3. Can I use a National Guard VA home loan to buy a co-op or manufactured home?
No, unless the co-op or manufactured home meets certain requirements set by the VA.
4. Do National Guard VA home loans have prepayment penalties?
No, National Guard VA home loans don’t have prepayment penalties.
5. How long does it take to get a National Guard VA home loan?
The time it takes to get a National Guard VA home loan depends on several factors, such as your lender’s processing times and how quickly you can provide the necessary documentation. However, the VA has established certain time requirements that lenders must meet to ensure timely processing of National Guard VA home loans.
6. Can I get a National Guard VA home loan if I have a bankruptcy or foreclosure on my record?
Possibly. If you have a bankruptcy or foreclosure on your record, you may still be able to qualify for a National Guard VA home loan, but you’ll need to meet certain requirements and provide additional documentation.
7. Can I get a National Guard VA home loan if I have bad credit?
Possibly. National Guard VA home loans have more flexible credit requirements than other conventional loans, but you’ll still need to meet certain minimum credit score requirements and provide additional documentation.
8. Can I get a National Guard VA home loan if I’m not a U.S. citizen?
No, National Guard VA home loans are only available to U.S. citizens, permanent residents, and certain non-citizen veterans.
9. Can I get a National Guard VA home loan if I have a disability?
Yes, National Guard VA home loans are available to service members and veterans with disabilities, and they may offer additional benefits.
10. Can I use a National Guard VA home loan to buy a condo?
Yes, you can use a National Guard VA home loan to buy a condo, but the condo complex must be approved by the VA.
11. Can I use a National Guard VA home loan to buy a multi-unit property?
Yes, you can use a National Guard VA home loan to buy a multi-unit property, but you must live in one of the units as your primary residence.
12. Can I use a National Guard VA home loan to refinance my current mortgage?
Yes, you can use a National Guard VA home loan to refinance your current mortgage to get a lower interest rate, to switch from an ARM to a fixed-rate mortgage, or to cash out equity.
13. Can I use a National Guard VA home loan to renovate my home?
No, National Guard VA home loans don’t cover home renovations or improvements. However, you may be eligible for a VA home improvement loan or grant.
Conclusion
And that, dear readers, is everything you need to know about National Guard VA home loans! Whether you’re looking to buy, build, or refinance your home, a National Guard VA home loan can help you achieve your dreams. With no down payment, no PMI, and competitive interest rates, this type of mortgage loan offers numerous benefits that are hard to beat. So, if you’re a member of the National Guard and you’re ready to take the next step towards homeownership, we encourage you to explore your options and see if a National Guard VA home loan is right for you.
If you have any questions or concerns about National Guard VA home loans, don’t hesitate to reach out to your lender or the VA for more information. We wish you the best of luck on your home-buying journey!
Disclaimer
The information in this article is for educational and informational purposes only and should not be construed as legal, financial, or professional advice. The VA and lenders may have different eligibility criteria and requirements, and you should consult with them directly to obtain the most accurate and up-to-date information. We make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the article or the information, products, services, or related graphics contained in the article for any purpose. Any reliance you place on such information is therefore strictly at your own risk.