How to Apply for a VA Loan

A VA Loan is one that is made by a private lender and is guaranteed by the Veteran's Administration up to $417,000 (more in some areas). It is available to military veterans, active duty, guards or reserves and some military spouses. There are several benefits to the VA Loan including 100% financing and protection against unreasonable fees.

Things You'll Need

• VA Form 26-1880
• DD214
• Certificate of Eligibility
• Statement of Service (active military)
• Pay stubs
• Bank Statements

Instructions

Applying for a VA Loan

1. Prior to applying for a VA Loan, you must complete VA Form 26-1880 and mail to VA together with your DD214. The VA will issue you a Certificate of Eligibility. Although your lender can get a Certificate of Eligibility through the internet, they are not always available online. The process will go quicker if you have this necessary document.

2. Put together bank statements and pay stubs for the most recent two months. You should also have your housing benefit and any other military benefits that you are receiving ready for your lender. They will request these in order to calculate your debt to income ratio.

3. Request a Statement of Service from your Commanding Officer. This will be used by your lender as your Verification of Employment.

4. Make sure your credit is in order and current. You should be current on all payments for at least a year. Although paying all debts is not necessary, it is wise to contact credit bureaus to have any necessary repairs made.

5. Bring all of these papers to a VA approved lender who will now be able to pre-qualify you for a VA loan. The process should now be very easy since you have provided all of the necessary paperwork.

Tips & Warnings

• If you are divorced, bring divorce papers, settlement papers and any child support orders to the lender. They will need these to calculate your debt to income ratio.

• If you have previously used your VA Entitlement, contact the VA so that they can reinstate your entitlement. You will need to send them your Satisfaction of Mortgage for the previous entitlement.

• You military pay stub has a section called ETS which stands for Estimated Time of Service. If this is within one year of applying for the loan, you will need a signed contract for employment to commence when your service is done. If you are re-enlisting, you will need a signed letter from your Commanding Officer stating that you are eligible to re-enlist and that you have committed to re-enlist.

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