Can a reservist get a va loan?

Can a reservist get a va loan
Share This Article

Last updated on July 27th, 2023 at 06:53 pm

If you are a reservist and you are planning to buy a house and you do not have enough budget to buy a house. So you have a very good option v a loan. Yes friends VA loan is one such loan given to active-duty service members, veterans, and eligible surviving spouses to buy a home, but the question arises whether reservists can take a VA loan or not.

Today in our blog Kabbage Loan Guide, we will discuss this in detail. In the previous article, we told you that Can you buy land with a VA loan? Today we will tell you in this article of ours can an army reservist get a VA loan. so let’s start the article.

Can a reservist get a VA loan?

Before starting the article, let us tell you that whenever in the USA, a reservist thinks of taking a home loan, there are many questions in his mind. Like what are the eligibility criteria for a VA loan for reservists? Is the reservist eligible for a VA loan or not? So today we will answer many questions related to VA loans. Some of which we have given below.

Related questions.

  • What is a VA loan and how does it work for reservists?
  • Who is a reservist in the USA?
  • Can a reservist get a VA loan?
  • How many points does a reservist need to qualify for a VA loan
  • Eligibility requirements for VA loans for reservists.
  • How does a reservist qualify for a VA loan?
  • When is a reservist considered a veteran?
  • How to apply for a VA loan as a reservist?
  • Can reservists use a VA loan multiple times?
  • Differences between VA loans for active duty and reservists.

What is a VA loan and how does it work for reservists?

A VA loan is a mortgage loan that is guaranteed by the Department of Veterans Affairs. VA loans are designed to help military veterans and their families buy homes, but reservists may also be eligible for these loans.

VA loans typically have lower interest rates than other types of mortgages, and they do not require a down payment or private mortgage insurance (PMI). This can make them an attractive option for many borrowers.

Who is a reservist in the USA?

A reservist is a member of the United States military who serves part-time. Reservists typically train one weekend a month and two weeks a year, but they may also be called up for active duty in times of national emergency or war. Reservists serve in the Army Reserve, Navy Reserve, Marine Corps Reserve, Air Force Reserve, Coast Guard Reserve, or in the National Guard.

Can a reservist get a VA loan?

As of July 25, 2023, National Guard and Reserve members are eligible for VA loan benefits if they meet certain service requirements. Generally, they need to have completed at least six years of honourable service in the National Guard or Reserve to be eligible for a VA loan.

However, there have been recent legislative changes that expand the VA loan eligibility for current and former National Guardsmen. Under the Veteran Health Care and Benefits Improvement Act passed in 2020, National Guard members activated under Title 32 orders can be eligible for a VA loan after serving 90 cumulative days of full-time duty, with at least 30 of those days being consecutive. This legislative change is also retroactive, meaning that National Guard members who served decades ago and meet the new Title 32 guidelines could now be eligible for a VA loan.

Before this change, National Guard members activated under Title 10 orders were already eligible for VA loan benefits if they served at least 90 consecutive days of active duty.

Reserve and Guard members may be asked to provide specific documents, such as NGB-22 or NGB-23 for National Guard, or DARP Form FM 249-2E or ARPC Form 606-E for Army Reserve, among others, to verify their service and eligibility for the VA loan.

It’s important to note that all VA borrowers, including National Guard and Reserve members, typically pay the VA funding fee, which helps keep the VA loan program sustainable. The funding fee is generally 2.15% or 3.3% of the loan amount, depending on factors like down payment and prior VA loan usage.

How many points does a reservist need to qualify for a VA loan?

Reservists do not need a certain number of points to qualify for a VA loan. Points are used to determine eligibility for retirement benefits, but they are not used to determine eligibility for a VA loan.

Eligibility requirements for VA loans for reservists.

Can a reservist get a va loan
Can a reservist get a VA loan

To be eligible for a VA loan as a reservist, you must meet certain requirements. In addition to serving for at least six years in the Selected Reserve, National Guard, or another military branch, you must also have been discharged under honourable conditions. Reservists must also meet certain credit and income requirements.

How does a reservist qualify for a VA loan?

To qualify for a VA loan as a reservist, you must obtain a Certificate of Eligibility (COE) from the Department of Veterans Affairs. You can apply for a COE online, through a VA-approved lender, or by mail. You will also need to provide documentation of your military service, income, and credit history.

When is a reservist considered a veteran?

A reservist is considered a veteran if they have served on active duty for any length of time, regardless of whether they were deployed overseas or not. Reservists who have served for at least six years may also be eligible for certain veteran benefits, including VA loans.

How to apply for a VA loan as a reservist?

To apply for a VA loan as a reservist, you should follow these steps:

  • Obtain a Certificate of Eligibility (COE) from the Department of Veterans Affairs.
  • Find a VA-approved lender and apply for a VA loan.
  • Provide documentation of your military service, income, and credit history.
  • Complete the loan application process and wait for approval.

Can reservists use a VA loan multiple times?

Yes, reservists can use a VA loan multiple times as long as they have not exceeded their entitlement and meet the eligibility requirements. The entitlement is the amount that the VA will guarantee for each borrower, and it is typically equal to the amount of the loan.

If you have used your entitlement for a previous VA loan, you may still be eligible for another VA loan if you have paid off the previous loan or if you are willing to sell the property and pay off the loan in full.

Differences between VA loans for active duty and reservists.

Differences between VA loans for active duty and reservists
Differences between VA loans for active duty and reservists

There are some differences between VA loans for active duty members and reservists. Active duty members typically have fewer requirements for qualifying for a VA loan, as they may be eligible for the loan after just 90 days of active duty service. Reservists must serve for at least six years in the Selected Reserve, National Guard, or another military branch to be eligible.

Additionally, reservists may be required to provide additional documentation of their military service, income, and credit history.

Conclusion.

Reservists may be eligible for a VA loan if they have served for at least six years in the Selected Reserve, National Guard, or another military branch, and meet certain credit and income requirements. To apply for a VA loan as a reservist, you should obtain a Certificate of Eligibility from the Department of Veterans Affairs, find a VA-approved lender, provide documentation of your military service, income, and credit history, and complete the loan application process.

While there are some differences between VA loans for active duty members and reservists, both types of borrowers can benefit from the low-interest rates and other benefits offered by VA loans.

Faq’s

Reservists can benefit from no down payment requirement, lower interest rates, and no private mortgage insurance (PMI) with a VA loan.

Yes, reservists can use a VA loan multiple times as long as they have not exceeded their entitlement and meet the eligibility requirements.

Yes, reservists are required to pay a funding fee for a VA loan, but the amount may vary depending on factors such as down payment and service type.

The maximum loan amount for reservists using a VA loan depends on the county loan limit and their available entitlement.

Reservists must serve for at least six years in the Selected Reserve, National Guard, or another military branch to be eligible for a VA loan.

Reservists can use a VA loan to purchase a second home if they meet the eligibility requirements and have available entitlement.

Thanks for your visit.

Our other interesting Articles.

Can I get a VA loan for a barndominium?

How many va loans can you have at one time?

Can you buy land with a VA loan?

Leave a Comment

Your email address will not be published. Required fields are marked *

Buy cheap website traffic
Scroll to Top