Things You'll Need:
- Certificate of eligibility
- Mortgage loan
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Step 1
Request a certificate of eligibility. You can obtain a certificate of eligibility VA form 26-1880 from the United States Department of Veterans Affairs website or by contacting your mortgage lender. Most lenders have access to a VA system called Web LGY; this is used to access the form for eligibility.
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Step 2
Read and complete the VA form 26-1880 in its entirety. Once the form is complete, mail it to the address provided on the form and include proof of your military service dates.
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Step 3
Submit your certificate of eligibility to the lender that will secure your VA mortgage loan. The current amount for VA mortgage entitlement for eligible veterans is $360,000; this is not an automatic loan benefit. Debt to income ratio will be the determining factor along with credit history on the amount of the loan.
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Step 4
Determine the amount of the purchase price of the home you are interested in purchasing and be sure to add the VA funding fee into the total price of the loan. For example, if you are applying for a mortgage loan for $192,900, the VA funding fee would be $4,147, about 2.15% of the purchase price, bringing the total loan amount to $197,047; this amount does not include the origination fees, down payment, or other applicable closing cost due. The VA funding fee is required by law and is 2.15% for first time VA loans and 3.3% thereafter.
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Step 5
Calculate your remaining VA mortgage entitlement after you obtain the loan subtract the total loan amount of $197,047 from the current VA mortgage entitlement of $360,000. For example, your VA mortgage entitlement is $360,000 subtract the mortgage loan amount of $197,047 from this amount and the remaining VA entitlement is $162,953.
