As we reach adulthood, there are certain responsibilities we all have to face. But more than responsibilities, we must also know life hacks and the benefits or perks we can claim. These tips may help us live a stable life today and a fruitful one in the future.
With that said, it is important to know if you qualify for a VA loan as a child of a Veteran. If you do, this is a great way for you to buy a home as well as refine your home-buying choices.
Being a Child or a Stepchild of a Veterans
As the child or stepchild of a Veteran, you are not automatically eligible for a VA loan. Although, you are eligible for a VA loan if your Veteran parent enlisted you as a dependent.
Meanwhile, many people also wonder if veterans’ grandchildren are allowed to obtain VA loans. The truth is, grandchildren, like children of Veterans, are not eligible for VA mortgages.
It is also worth noting that eligibility for a VA loan must also mean that the Veteran meets the VA’s service requirements.
Individuals Who Qualify for VA loans
VA loans are normally available to three groups:
- Active-duty military soldiers with sufficient service time
- Veterans who meet the requirements for length of service
- Qualifying surviving spouses
Understanding Surviving Spouse Eligibility
A survivor must meet certain requirements to be eligible for a VA home loan. To determine your eligibility, speak with a VA home loan specialist.
- Obtaining Your COE
To acquire a VA loan, you must first obtain a Certificate of Eligibility (COE). Your military eligibility is confirmed by this documentation. By completing VA Form 26-1817 and their spouse’s discharge documentation, survivors can obtain a Certificate of Eligibility. You do not need this before beginning the VA loan application process, but you will need it before closing. Lenders can help surviving spouses obtain COEs.
Mortgage Options for Veterans’ Children
If you are the child of a Veteran and want to buy a home, you have options other than the VA loan. Here are some non-veteran mortgage choices:
- Traditional Loans
The government does not guarantee a conventional loan. Banks, credit unions, and mortgage businesses all provide them.
A down payment is required for conventional loans, but not for VA loans. Some lenders just require a 3% down payment. If you do not contribute 20%, you will require PMI (PMI). This gives you more purchasing power.
- FHA Home Loans
FHA mortgages are popular among younger applicants with lower salaries due to lower credit scores and down payment requirements.
You can get an FHA loan with a 3.5% down payment if your credit score is at least 580, but most lenders require more. FHA loans require upfront and annual mortgage insurance, whereas private mortgage insurance is not required.
- USDA Financing
When buying a rural or suburban home, consider a USDA loan. The USDA guarantees these zero-down loans, as it does VA and FHA loans. They allow borrowers to buy homes with low-interest rates and no down payment.
The Bottom Line
Perhaps it’s high time to look into mortgage loans now. Remember, if you are unsure about your eligibility for a VA loan, you can easily speak with an expert and seek their guidance. This way, you can ask questions and make informed decisions in the future.
Are you looking for a VA loan in Phoenix? Desert Springs Mortgage LLC is a reliable mortgage brokerage that offers multiple financing options. With us, you can find exactly what you’ll need. Call us today at (623) 432-1309!