How to Apply for a Home Loan as a Veteran

By Alexis Writing

The U.S. Department of Veterans Affairs, or VA, underwrites or guarantees loans for military veterans. This program is designed to help veterans buy home loans either with smaller down payments and/or at lower interest rates, to reward veterans for their service to the United States. If you are a veteran, you should consider applying for a VA loan when buying a home.

Determine eligibility. You are eligible if you were in active duty during or after World War II and received an honorable discharge; if you were in active duty and served in combat for at least 90 days; if you have 180 consecutive days of service during peacetime; or if you enlisted after 1980, have served two years and are still enlisted.

Obtain your certificate of eligibility from Veterans Affairs. To qualify for a VA home loan, you will need this certificate to prove your eligibility. You will need to fill out VA Form 26-1880, which is available online at http://www.vba.va.gov/pubs/forms/vba-26-1880-ARE.pdf, or contact your local Department of Veterans Affairs.

Find a lender that provides VA loans. Veterans Affairs itself does not offer loans, but instead it guarantees loans from private lenders, thus allowing them to offer special loan options to veterans. Contact local lenders to see whether they offer VA loans, or visit the Ginnie Mae website at http://www.ginniemae.gov/. It provides more information about lenders in your area that offer VA-guaranteed loans.

Give the lender you choose your certificate of eligibility plus other relevant information, and apply for the loan. In addition to proof of your right to apply for a VA loan, you will need to have all the other information required to apply for any type of mortgage loan, such as proof of your identity (a driver's license and Social Security number) and proof of income, such as tax returns.

When you apply for a VA loan, you might be able to put down less than 20 percent and still avoid private mortgage insurance, unlike when you apply for a standard conventional mortgage.

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