Crestline Mortgage is proud to serve the military community of Colorado Springs. We understand the needs of our military families and take great pride in helping them achieve their dreams of home ownership. If you're stationed at Fort Carson, Peterson AFB or Shcriever AFB please give us a call. We guarantee that you will be treated with the honesty and respect you deserve. Please feel free to use this page as a reference, you'll find answers to most of your questions regarding VA Loans, VA Entitlement and VA Eligibility on this page.
Overview-VA Loans
VA guaranteed loans are made by private lenders and mortgage companies to eligible veterans for the purchase of a home that must be for their own personal occupancy. To get a loan, a veteran must apply to a lender. If the loan is approved, VA will guarantee a portion of it to the lender.
If the veteran has never used his/her entitlement before, or previously used it for a home which has been sold and the loan paid in full, the he/she has full entitlement available and can apply for maximum VA financing.
Based on secondary market requirement, lenders generally limit VA purchase loans to $417,000 (including the funding fee), which is equal to the conventional conforming loan limit for 2008. In December 2004, VA guidelines were modified so the maximum entitlement will index and increase accordingly with conforming loan limits, therefore always equaling 25% of the current conforming limit.
Requirements for VA Loan Approval
To obtain a VA loan, the law requires that:
The applicant must be an eligible veteran who has available entitlement.
The veteran must occupy the property as a home.
Eligible Loan Purposes
Eligible veterans and service personnel may obtain loans for the following purposes:
To buy a home up to 4 family units for one veteran, including townhouses or condominium unit in a VA approved project.
To build a home.
To refinance an existing home loan
Cash-out Refinance
Reduce the interest rate (Interest Rate Reduction Refinance Loan-"IRRRL")
Advantages of VA Home Loans
100% Financing/ No Down Payment
One Ratio Calculated-Back Ratio 41%
No Cash Reserves Required
VA Funding Fee Can Be Financed
More Leniency on Derogatory Credit
Seller Contribution 4% Including Prepaids
No Monthly Mortgage Insurance
Maximum Loan Amount equal to the Conforming Loan Limit
VA Funding Fee
The VA Funding Fee is a one-time, up-front charge applied as a percentage to the "Base Loan Amount". The Funding Fee may be financed into the loan provided the entire loan amount including the Funding Fee does not exceed the current conforming loan limit ($417,000 for 2008). The fee is remitted by the Lender to VA after loan closing. The fee is fully earned by VA upon loan closing and is not available as a prorated refund to the veteran, even if the veteran refinances to another VA loan at a later date.
How to get your Certificate of Eligibilty
The VA does not offer an online certificate request. However we can get an online VA approval when submitting a loan application using the Automated Certificate of Eligibility (ACE) system. A completed application is needed for submission. If the VA has sufficient information on file for the borrower, it will verify eligibility and issue an electronic certificate. This can save weeks of waiting for a paper certificate in the mail.
To request your certificate by postal mail, you must provide proof of service and a completed VA form 26-1880. Proof of service can be a letter from your personnel office or a copy of your DD-214 certificate of retirement. If you have lost your DD-214, you can request a new one from http://www.archives.gov/veterans/military-service-records/
Mail your 26-1880 and proof of service to:
VA Eligibility Center
PO Box 20729 Winston-Salem, NC 27120
This process will take 4-6 weeks for processing.
Check the status of your certificate request -
Toll free number: 1-888-244-6711
Hans Fetterhoff - NMLS# 273273 LMB #100009597 Lender NMLS #2996
