Qualifications for Military Home Loans

By Jamie Kim

In 1944, President Franklin D. Roosevelt signed the GI Bill. Over time, it became known as the Veterans Administration Loan or VA Loan. This loan offered many U.S. military veterans and their families a chance at home ownership they might not otherwise have enjoyed, by allowing them to purchase homes with no down payment. Since the loans are federally funded, private lenders are repaid the loan amount if the veteran-borrower defaults on the mortgage.

Originally, in order to qualify for a VA loan, a veteran was required to have served at least 90 days of active duty in the U.S. military during wartime or 181 days during peacetime. Later, however, the statute was amended, requiring veterans who began their military service after September 7, 1980, to serve at least two years of active duty in order to become eligible. In addition, to qualify for a VA loan, the veteran must currently be an active serviceman or have been honorably discharged.

If you are or were a U.S. National Guard member or a military reservist in another branch of the armed services, you must have served for six years to become eligible. A spouse of a deceased veteran may also apply for a VA home loan if unmarried or older than 57.

The Veterans Administration will provide federal insurance up to 25 percent of the loan amount, not to exceed $417,000. In other words, the federal government will provide private lenders with a maximum guarantee of $417,000 if the veteran defaults on the loan.

VA Loans still go through the traditional lending approval and underwriting process. The lender providing the loan will verify credit history and score, past debts, and source of current income.

VA Loans are only extended to veterans that provide a Certificate of Eligibility or COE. In order to obtain the COE, a veteran must first complete "VA Form 26-1880" during the loan pre-qualification process. This form allows the Veterans Administration to verify the length of the borrower's military service.

Additionally, those currently serving on active duty must obtain a signed statement of service from a higher ranking officer, including total length of service and the date service began. Honorably discharged veterans must obtain DD Form 214-Certificate of Release or Discharge from Active Duty and submit a copy of that form.

If the veteran was in the National Guard or Reserves, then documentation proving six years of service with honorable discharge must be provided. Otherwise, current active Reservists and Guardsmen must obtain signatures from higher-ranking officers.

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Qualifications for a VA Loan

By Wendy Lynn

One of the benefits of being a veteran is the ability to obtain a VA guaranteed loan when it comes time to buy a house. Having a VA loan often means a lower interest rate and even allows you to avoid having to come up with a down payment. Because the loan is guaranteed, lenders are willing to give more favorable loan terms.

The first step to obtaining a VA loan is getting a certificate of eligibility. According to the U.S. Department of Veterans Affairs, all veterans who were not dishonorably discharged and have served more than two years' active duty since World War ll are eligible. If you served as an enlisted person before 1980 or as an officer before 1981, you need 90 days' active duty if you served during wartime or 180 days if your service dates were in peacetime. National Guard or Reserve members need to have six years of service.

Veterans Affairs has a 41 percent debt-to-income ratio guideline in place to have reasonable reassurance that you will be able to repay a VA loan. To figure your ratio, add together all your recurring monthly credit bills, add in the expected house payment (including taxes and insurance) and divide the sum by your gross monthly income. If your ratio comes out to higher than 41 percent, you may pay off some smaller loans or you still may pass under residual income guidelines.

The VA will do a credit check. It will look for any previous late mortgage payments or foreclosures. Any Chapter 7 bankruptcies must have been discharged more than two years previous. Chapter 13 bankruptcies with one year of on-time payments will be approved. Small collections need not be paid, but any judgments or federal debt will have to be resolved before qualifying for a VA loan. If you have no credit history, you may be able to obtain eligibility by providing proof of on-time rent and utility payments.

According to the Department of Veterans Affairs, any house that has a VA guaranteed loan must be occupied by the veteran. A VA loan cannot be used to purchase a house you plan on using as a rental. You must be able to move into the house within 60 days of closing. Interest Rate Reduction Loans do not require that the veteran live in the home, only that they did at one point.

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Qualifications for a VA Home Loan Refinance

By Don Rafner

Members of the U.S. military and veterans who already have mortgage loans insured by the U.S. Department of Veterans Affairs can refinance under the same program. By refinancing their VA loans, they can often dramatically reduce their interest rates. Depending on the size of their loans, and the drop in their rates, homeowners with VA loans can drop their monthly mortgage payments by more than $100. To do this, though, they'll have to meet certain requirements.

To qualify for what the VA calls an Interest Rate Reduction Refinancing Loan, homeowners must already be making monthly payments on a VA loan. Homeowners must also refinance to another VA-insured loan to qualify for the rate reduction refinancing loan.

To qualify for a VA refinance, homeowners must pay a fee equal to one-half of 1 percent of the amount of the new loan. Homeowners can either pay this fee upfront in cash or roll it into their monthly loan payments. By including the fee in their monthly payments, homeowners can spread the impact of this charge out over the life of their new loan.

When applying for a VA loan, borrowers must certify with the Department of Veterans Affairs that they either occupy their new home or intend to occupy it. For a VA loan refinance, though, borrowers only have to certify that they previously occupied the home.

When refinancing a VA loan, borrowers should be sure that the interest rate on the refinanced version of the loan is lower than the rate on the original loan. This does not hold, though, if borrowers are refinancing an adjustable-rate mortgage VA loan to a fixed-rate version.

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Qualifications for a Boat Loan

By Monica Link

Requirements for a boat loan are different than the requirements for other types of loans. Unlike an auto or home loan, financial institutions require a heightened level of requirements before approving a loan for a boat. The main requirements include credit, income and down payment and the ability to repay the loan.

Credit requirements are strict for boat loans. According to boating information site Three Sheets Northwest, credit requirements for a boat loan include a Fair Issacs and Company (FICO) credit score in the mid 600s or above. Like other types of loans, lenders review the borrowers debt-to-income ratio. When traditional lenders deny borrowers for boat loans there are subprime lenders who may approve a loan for a boat. Since each applicant and case is different, a subprime lender or a lender that specializes in bad credit loans may charge a higher interest rate, and require a larger down payment. The lender may also enforce limits on the loan amount and threaten repossession of the boat if payments are regularly missed or late.

The income requirements on the average boat loan depends on the amount of the boat and the buyers net worth. For example, a borrower applying for a boat loan for $75,000 must have a net income of twice the amount of the boat loan. This means that the potential borrower should have a net worth of $150,000. Real estate owned can be included in the totals of a borrower's assets.

Repayment ability is a major issue in the requirements to obtain a boat loan. The type of vessel or boat is considered in this part of the criteria. For example, it may be slightly more difficult to get financing for an older boat due to the possibility of the boat malfunctioning and limiting the ability for the loan to be re-payed. Banks and financial institutions will repossess a boat if the payments are delinquent. When considering the borrower's ability to repay, the bank will assess the risk based on the previously mentioned criteria. Banks will also consider the possibility of repossession since a boat that is repossessed is a financial loss for the bank.

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Programs to Help People on SSDI & Veterans Disability

By Mike Andrews

Some people who cannot work due to a disability get financial assistance from Social Security or from Veterans Disability. They can receive Social Security Disability Insurance (SSDI) only if they worked long enough before becoming disabled and paid Social Security taxes. The amount they receive from SSDI is based on how much they earned in the past. People can receive Veterans Disability only if they were active members of the military and became disabled during wartime.

Medicare covers many healthcare expenses and provides health insurance for many elderly and some disabled people. People who have qualified for SSDI for two years receive Medicare. Those who receive Veterans Disability also receive Medicare if they meet the criteria.

SSDI recipients may receive Medicare and disabled veterans may receive some healthcare services through the Veterans Administration. However, SSDI and the the Veterans Administration do not cover all healthcare expenses. People on disability, who have many medical expenses but cannot pay for all the care they need, may qualify for Medicaid. The program provides health insurance for low-income people, including the disabled and elderly. Some people can receive Medicaid and Medicare if they meet the criteria for both programs.

Food stamps help low-income people afford groceries. Not everyone on SSDI or Veterans Disability qualifies for food stamps; the amount of disability pay they receive determines eligibility. Those who qualify can purchase a variety of food items from the grocery store of their choice. They also can purchase plants or seeds if they want to grow their own food.

The Home Energy Assistance Program provides low-income people assistance with winter utility bills, including gas and electric heating. Many people on disability qualify. The amount they receive is based on their family size and household income.

Local agencies often provide programs that help people in need, including those on SSDI and Veterans Disability. Telephone companies often offer discounts for disabled customers. Organizations like Catholic Charities, the Salvation Army and community-action agencies offer assistance with things like utility bills, rent payments, necessary home repairs and finding warm winter clothing. Churches and other organizations sponsor food pantries, which sometimes offer, along with food, household products like cleaning supplies, laundry detergent, hygiene items and paper products. These services are available to many people on disability. Because programs vary from area to area, contact your local United Way nearest you to find out what services are available near you.

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Prescription Services & Benefits for Veterans

By Janise Smith

Men and women veterans of the Army, Air Force, Navy, Marines and Coast Guard as well as Reservists and members of the National Guard are eligible to receive health care benefits during and after their active service duties. Government and independent providers offer medical coverage or discount programs to veterans, their spouses and dependents that include such services as physical exams, hospitalization and prescription benefits.

Veterans enrolled in the VA health care program must have their prescriptions monitored and managed by VA providers or co-managed with a community provider. Medications must be prescribed by VA providers from a list of approved medications, and the prescription benefits of the VA plan does not include prescriptions or refills from private physicians. Veterans wanting coverage for medications prescribed from non-VA physicians have to provide their VA health care providers with all outside medical records to get VA approval. VA health care providers are not obligated to prescribe medications recommended by non-VA physicians. The VA also offers online prescription service benefits for veterans that allow them to order refills and manage their VA prescribed medications. Veterans can also refill prescriptions through the mail or by telephone.

Many veterans already enrolled in the VA healthcare plan are also eligible to enroll in the Medicare program. The VA reviewed the prescription services and benefits offered in Medicare plans and determined that the VA health program provides benefits comparable to it. Veterans have the choice to enroll in a Medicare prescription plan and still receive all VA prescription drug and health benefits as they can participate in either program or in both. Veterans enrolled in both plans cannot have coverage under both programs for the same prescription, and they may choose programs based on the prescription and if it is covered on the approved drugs list. If veterans lose VA coverage as a result of changes made to the program by the administration, they can enroll in Medicare Part D prescription coverage within 62 of losing the VA coverage without penalty.

Veterans Advantage partners with other corporations to provide discounts to veterans through their national program. A prescription drug card is provided as part of all three membership choices and veterans can receive discounts on prescriptions at more than 50,000 regional and national pharmacies including Rite Aid, CVS, Kmart and Walgreens. Additional services and benefits for veterans in the Veterans Advantage membership include receiving assistance with locating local participating pharmacies as well as looking up covered prescriptions and comparing their costs before purchasing.

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Pension Benefits for Veterans

By J.S. Nogara

After a person has served in the military, that person is eligible to receive veterans benefits. These benefits include the areas of compensation and pension. This article provides an overview of what veterans pensions benefits are, discusses eligibility requirements, reviews whether a spouse and children of a veteran may receive benefits and discusses how to file for pension benefits.

A veterans pension benefit is a monthly income paid to the veteran by the United States government, based upon wartime military service. The benefit is based upon the veteran's family income and is generally paid to the veteran in twelve monthly payments per year.

According to the Code of Federal Regulations, in order to be eligible for veterans benefits, the veteran must meet four conditions. First, the veteran must have been "discharged from duty for purposes other than dishonorable mention". Secondly, the veteran served "ninety days or more of active duty with at least one day during war." (Note that there may be exceptions to this requirement for veterans serving after September 1980.) Additionally, the veteran must be "permanently disabled or over the age of sixty-five". Finally, the veterans "family income must be below a specific amount" which is set by the government.

Dependents of a wartime veteran who has died may be eligible to receive a death pension benefit. This benefit is payment of money which is generally paid to the dependents in twelve monthly installments. The dependents must fulfill eligibility requirements. According to the Code of Federal Regulations, these requirements include: the veteran must have been "discharged from duty for purposes other than dishonorable mention"; the veteran served "ninety days or more of active duty with at least one day during war"; the dependent is the "surviving spouse or unmarried child of the veteran"; and the "family income is under a certain amount".

The best way to apply for veterans pension benefits is to visit the United States Department of Veterans Affairs Veterans Benefits Administration website. This website is located at http://www.vba.va.gov/VBA. The site contains the income criteria levels and includes links for applications for veterans pension benefits.

When one submits an application, there is a large amount of documentation required. Physicians reports and diagnostic reports, hospital records, proof of all forms of income for the family, marriage certificates, divorce decrees and birth certificates may all be required. Thus, when one contemplates applying for benefits, it is important to recognize that there is a lot of work involved in filing the application. Frequently, the jurisdiction in which one resides may have local agencies which can assist veterans with the process. Alternatively, one could contact the local American Legion, which provides assistance to veterans in an array of matters, including applying for veterans benefits.

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