VA Home Loan Programs
Before starting the VA home loan process the Veteran is required to have an Automated Certificate of Eligibility. This can often be obtained from their lending institution if they have access to the ACE database. This is a process that is easy to complete and can be completed via the internet. If the chosen lending institution does not have access to the ACE database, an eligibility certificate can be obtained through the VA Eligibility Center.
Once the borrower is deemed to be eligible for a VA Home Loan, the purchasing process proceeds as any other home purchase would. The loan process will require an appraisal but it is suggested that the Veteran have a home inspection done on the home as well. It is ultimately the purchasers responsibility to ensure that they are purchasing a structurally sound home. The VA can not force the seller to guarantee that the home being purchased is structurally sound or force them to later make repairs if the need arises.
If after purchasing a new home the Veteran finds that they are unable to make payments as agreed in the mortgage loan, the VA recommends calling the loan holder immediately. It is better to call the lender before the loan is delinquent as they are much more likely to work towards a resolution if made aware of the situation first.
The VA does offer financial counseling to help home owners avoid foreclosure and warns Veterans against letting someone assume their loan. If the Veteran decides to sell their home to avoid the foreclosure process, the VA Loan Guaranty Division suggests that the Veteran call their center in order to have the offer reviewed to insure that the Veteran is not being taken advantage of or entering into an unscrupulous agreement. By reporting such offers and allowing The VA Loan Guaranty Division to review the offer, the Veteran is taking the right steps to protect their best interests and helping the VA Home Loan Program stay strong by avoiding fraud.