The VA Home Loan Program was established for Vets and their immediate families to obtain a home with little to no money down after serving their country during World War II.  This was  the first time in our countries history where so many people wanted to own their own home.

The VA Home Loan Program is sponsored and guaranteed by the federal government.  The loan amount cannot exceed $417,000.  This loan limit is set by the Federal Housing Agency (FHA) and Freddie Mac.  There are several loan programs the VA offers.  These loan programs are:

• Purchase of a Single family residence, Townhome, Condo, and a Multi-unit property (up to 4 units)  
• Purchase of a property and improve a home consecutively.
• Energy Efficient Improvement loans
• Cash-out Refinance
• Streamline Refinance aka Interest Rate Reduction Refinancing Loan (IRRRL)

To qualify for a VA Home Loan you must meet eligiblity requirements.  To find out if you are eligible for the entitlements you must mail to the VA Administration the application for the Certificate of Eligibilty (COE) (VA Form 26-1880). You must provide proof of military service through discharge papers. To obtain VA Form 26-1880 go to http://www.vba.va.gov/pubs/forms/VBA-26-1880-ARE.pdf  After you recieve the COE you can fax it to Allied Mortgage Group and one of our loan officers will be glad to pre-approve you. 

The basic entitlement all Veterans receives is $36,000.  This basic entitlement is based on a home loan of $144,000. This is exactly 25% of the guaranty loan amount.  If you were  to purchase a home that costs more the guaranty will be calculated as such:

Loan amount:  $250,000   Basic Entitlement: $36,000

(Loan amount x 25%= )-$36,000=Bonus entitlement for 2010 

You are allowed up to 4x the amount of basic and or bonus entitlement. 

So if your bonus entitlement is $68,000. You can recieve $272,000. 

Some areas of the country the loan limits will be higher.  Allied Mortgage Group is a national direct lender.  To apply for VA Loans go to www.loansbyallied.com

Tomorrow we will discuss the IRRRL program.