Program Description
VA guarantees a percentage of the loan. This
helps the veteran obtain a no-down payment mortgage at a competitive
interest rate.
General Program Requirements
Persons who may qualify for VA guaranteed loans
include - Veterans (including Reserve and
National Guard members who were called to active
duty)
- Active duty service members
- Current Reserve and Guard members
(usually after 6 years of reserve
service)
- Certain surviving spouses
Commissioned Officers of the Public
Health Service and National Oceanic and Atmospheric Administration are
considered to be active duty members and veterans, once
discharged.
Length-of-service
requirements apply in most cases.
Veterans must have been discharged under conditions other than
dishonorable.
You will need a valid
Certificate of Eligibility (COE). You can get one from VA or from a lender
using the Automated Certificate of Eligibility (ACE)
program.
If you need to obtain your
COE, contact a lender about obtaining your COE or download VA Form 26-1880,
complete it and mail it (with proof of service) to our Winston-Salem
Eligibility Center at:
VA Loan
Eligibility Center
PO Box 20729
Winston-Salem, NC 27120
You can
download the form at http://www.va.gov/vaforms/.
For overnight
delivery:
VA Loan Eligibility Center
251 N. Main Street
Winston-Salem, NC
27155
Toll free number: 1-888-244-6711
E-mail: nceligib@vba.va.gov
Loan Terms
A loan to finance the construction/purchase of a residence is
closed prior to the start of construction with proceeds disbursed to cover
the cost of, or balance owed on, the land, and the balance into escrow. The
escrowed monies are paid out to the builder during construction.
A veteran begins making payments on a
construction/permanent home loan only after construction is complete. So, if
the home takes six months to complete construction, the payment schedule for
the veteran obtaining a 30-year mortgage must provide for full repayment of
the loan in 29 years and six months.
On a construction/permanent home loan, the builder is responsible
for:
- interest
payments during the construction period, and
- all fees normally paid by a builder who obtains an interim
construction loan including, but not limited to:
-
inspection fees
- commitment fees
-
title update fees, and
- hazard
insurance.
Application Process
For more information, see the Program Contact Information below.
Program Contact Information
For more information on this program, please
visit:
http://www.homeloans.va.gov
Please contact a Regional Loan Center
if you have detailed questions:
Http://www.homeloans.va.gov/RLCWEB.htm
Managing Agency
Veterans Benefits Administration (VBA)
http://www.vba.va.gov
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