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VA Loans for Native Americans
HOW TO GET A VA DIRECT LOAN
Who is Eligible?
Veterans who were honorably released from active duty service, during World War II and later
periods are eligible for VA loan benefits. World War II (September 16, 1940 to July 25, 1947),
Korean conflict (June 27, 1950 to January 31, 1955), and Vietnam-era (August 5, 1964 to May 7,
1975) veterans must have at least 90 days service. Veterans with service only during peacetime
periods and active duty military personnel must have had more than 180 days active service.
Veterans of enlisted service which began after September 7, 1980, or officers with service
beginning after October 16, 1981, must in most cases have served at least 2 years.
Persian Gulf Conflict. Basically, reservists and National Guard members who were activated on or
after August 2, 1990, served at least 90 days and were honorably released from the period of
activation are eligible.
Reservists. Members of the Selected Reserve, including National Guard, who are not otherwise
eligible and who have completed 6 years of service and have been honorably discharged or have
completed 6 years of service and are still serving are eligible. Eligibility for Reserves and
National Guard individuals will expire October 28, 1999. Ask your local VA office about what
is needed to establish eligibility. Reservists will pay a slightly higher funding fee than
regular veterans. (See paragraph entitled "Costs of Obtaining a VA Direct Loan.")
VA Determination of Reasonable Value
The maximum loan amount may not exceed VA's estimate of the reasonable value of the property to be
purchased. A qualified appraiser assigned by VA will perform the appraisal and make this determination.
An application fee, collected from the veteran at the time of loan application, will be used to
pay for the cost of the appraisal and for other expenses connected with the processing of the loan.
It is important to recognize that VA does not guarantee the value or condition of the property.
Homebuyers should carefully inspect the property themselves, or have it inspected by a reputable
inspection firm.
Loan Application
Contact either your local housing authority or your local VA office to apply for the loan.
The party processing the loan verifies the applicant's income and assets, and obtains a
credit report to see that other obligations are being paid on time. If the VA office
reviewing the package determines that all is well and the appraised value of the property is
enough to cover the loan needed, the loan will be approved and a date set for loan
closing.

FREQUENTLY ASKED QUESTION # 30 [ -more VA Loan questions- ] - - - - - -
Q: Improving Credit - How can I help myself before applying for a VA home loan?
A: Because your VA loan eligibility depends on your debt ratio, it's a good idea to start thinking about fixing your credit long before actually filling out loan paperwork. The best way to help yourself out is to follow the advice of a credit counselor, but you can also take steps on your own to increase your eligibility for a VA home loan. Eliminate as much credit card debt as possible. If you can get yourself down to a single card and stay that way for six months, you will be well on your way to improving your debt ratio and your credit rating. Remember that the maximum debt ratio allowed for approval is 41%, and that your credit rating is also a factor. If you are within a few months of paying off a major debt such as an automobile loan, do so as quickly as possible. You'll most likely need to allow for credit reporting agencies to "catch up" with your newly paid off cards and loans.
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VALoans.com is a private company specializing in VA financing and is
not a government agency.
Remember, the VA does not make home loans. They insure the loans that we can assist you in getting.
Let us help you get a VA insured mortgage loan at the lowest possible rates.

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