November 11th is Veterans Day, and there is no better way to honor the men and women who have served our nation than to make it a little easier to obtain the American dream of owning a home. Our real estate agents work closely with veterans and their families and can help navigate the paperwork and process of securing a VA home loan to purchase a home in Oregon. If you or your spouse is a veteran, the following are some things you should know about the process and changes that are in the works.

Getting Started

The first thing you should do is locate a realtor with specific experience with VA home loans. It will make the process easier and less complicated. In addition, the right agent can help you navigate lending requirements and streamline your search to Klamath Falls homes for sale that fall within your price range and desired budget.

VA home loans can be secured for almost any home, regardless of age. However, the home will need to be free of problems. Minor defects are usually no problem. However, most fixer-uppers are unlikely to qualify for a VA home loan. 

Qualifying for VA Home Loans

Veterans are eligible for VA loans if they meet certain requirements. These include being active duty or a veteran with sufficient length of time in the service; currently two years for regular service, six years for Reserve and National Guard, or 90 days active duty during wartime.

To secure a VA home loan, you'll need to secure a Certificate of Eligibility (COE) by providing your DD 214 for veterans or active-duty service members, a statement signed by your commander or personnel officer. Reservists and those never activated may need further documentation, including proof of honorable service, retirement points, or Report of Separation and Record of Service (NGB Form 22). Because of the number of documents required, it's advisable to gather everything before starting your home search.

Fortunately, there are no credit score requirements, but most lenders will require a score of 620 or higher. And, there are income requirements, but these are generally not as strict as those required for conventional loans.

Further, gone are the days when VA home loans were limited to properties below a defined price limit. This means that veterans or their surviving spouse can secure a VA home loan, still with $0 down, for practically any home so long as they have sufficient income to meet the lender's requirements.

Funding Fee Changes to Note

It's important to remember that VA loans come with a one-time funding fee of 2.15% to 3.6%. This fee is used to keep the program operational for veterans today, tomorrow, and in the future. The fee depends on the loan's value, whether it's your first loan and how much you put down. Thus, unless you are exempt due to disability rating (10% or higher), or a surviving spouse, you will want to factor this into your loan calculation.

Contact us to learn more about the process of obtaining a VA home loan to purchase homes in Oregon. We salute your service, and it is our pleasure to answer your questions and give you the advice you need to get started.