Army House Loan: Everything You Need to Know

Serving Our Heroes, Protecting Their Homes

Welcome, dear reader! If you are serving in the military or a veteran, we understand the value and importance of the sacrifices you have made for our country. Owning a home is probably one of the most significant investments in your life, and we believe that you deserve the best possible support, even with financing. In this article, we will provide you with all the information you need to know about army house loans. From eligibility to requirements, we’ve got you covered. So, without further ado, let’s dive in!

What is an Army House Loan?

An Army House Loan, also known as a VA (Veteran Affairs) Home Loan, is a type of mortgage loan that is exclusively available to current and former members of the U.S Military and their eligible surviving spouses. The VA Home Loan is backed by the Department of Veterans Affairs, and it provides a variety of benefits and concessions to help eligible military service members purchase or refinance their homes.

Who is Eligible for an Army House Loan?

To be eligible for an Army House Loan, you need to meet one of the following criteria:

Service During Wartime 90 days of active service during wartime or At least 181 days of continuous active duty during peacetime
Service During Peacetime At least 181 days of continuous active duty More than six years of service in the National Guard or Reserves
Spouses of Service Members Surviving spouses of military members who died while on active duty or as a result of a service-related disability

What Are the Benefits of an Army House Loan?

There are several benefits that come with an Army House Loan:

  • No down payment required
  • No Private Mortgage Insurance (PMI)
  • Competitive interest rates
  • Flexible credit requirements
  • Reduced closing costs
  • Assumable mortgage
  • Possibility of refinancing without appraisal or credit underwriting

How to Apply for an Army House Loan?

To apply for an Army House Loan, you need to follow these steps:

  1. Determine your eligibility
  2. Choose a lender
  3. Obtain your Certificate of Eligibility (COE)
  4. Gather the required documents
  5. Complete the loan application
  6. Wait for the lender’s approval

FAQs About Army House Loan

1. Can I use an Army House Loan to buy a vacation or investment property?

No, army house loans are only for primary residences.

2. Is there any limit on the loan amount I can receive?

Yes, there is a limit based on the location and county. You can check the limits on the VA website, or your lender can provide you with the details.

3. Can I get an army house loan if I have bad credit?

While credit requirements are flexible, your credit score must meet the lender’s criteria. It’s best to discuss your options with a VA-approved lender.

4. Do I need to pay any upfront fees for an army house loan?

You may need to pay a VA funding fee, which varies based on the loan amount and type, and if you’ve applied for the VA loan before. However, in some cases, you may be exempt from paying the fee.

5. Can I use an army house loan to refinance my existing mortgage?

Yes, you can use an army house loan to refinance your existing mortgage, and it’s called a VA refinance or a VA streamline refinance.

6. Is there any penalty for prepaying my army house loan?

No, there is no penalty for prepaying your army house loan. In fact, it’s encouraged to save on interest payments.

7. Can I have two army house loans at the same time?

Generally, no. However, there are some situations where you may be eligible for another VA loan. It’s best to check with your VA-approved lender.

8. How much time does it take to process an army house loan?

Processing time may vary based on several factors, such as the lender, the loan type, and the required documentation. Typically, it takes about 30 to 45 days.

9. What happens if I default on my army house loan?

Defaulting on your army house loan can have severe consequences, such as damage to your credit score, foreclosure of your property, and even legal actions.

10. Can I have a co-borrower on my army house loan?

Yes, you can have a co-borrower on your army house loan, provided the person meets the eligibility requirements.

11. What is the maximum debt-to-income (DTI) ratio allowed for an army house loan?

The maximum DTI ratio allowed for an army house loan is 41%. However, some lenders may offer flexibility based on your credit score and other factors.

12. Can I use an army house loan to buy a multi-unit property?

Yes, you can use an army house loan to buy a multi-unit property, provided you occupy one of the units as your primary residence.

13. Can I sell my property if I have an army house loan?

Yes, you can sell your property even if you have an army house loan. However, you need to inform the VA about the sale and repay the outstanding loan amount.

Conclusion: Take Action with Confidence

We hope we’ve provided you with all the necessary information about army house loans. As a military service member or veteran, you deserve the best, and we believe that an army house loan is one of the best financing options available to you. Remember, your dream of owning a home is closer than you think, and with an army house loan, you can make it a reality. Take action with confidence!

Thank you for reading!

Disclaimer: Protecting the Rights of Our Audience

The information provided in this article is for informational purposes only and does not constitute legal, financial, or professional advice. Please consult with a VA-approved lender or a qualified professional for personalized information regarding your specific situation. We are not responsible for any actions or decisions made based on the information provided in this article.