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 APPLICATIONS
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.
