A veteran can use their entitlement to purchase an investment property with no money down, containing up to four units, provided they intend to live in one of the units at the time of the purchase.      

VA News
VA Loan Eligibility Criteria
VA Sliding Scale Guaranty
Partial Entitlements
Department of Veteran Affairs, Updates
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VA News

Washington D.C. July, 1998

      The House Veterans Affairs Committee approved legislation (HR 4110) extending mortgage-guarantee requirements to more veterans.
      The proposal would provide permanent housing entitlements to reservists, who now must pay higher loan fees than active-duty veterans.
       Meanwhile, the measure would also allow bidders to compete openly for contracts to manage and maintain homes foreclosed by the Dept. of Veterans Affairs. This would be consistent with the practice for the Federal Housing Administration and other federal agencies.

House Panel Approves Credit Subsidy

      The House Appropriations Committee earmarks $263.5 million for the Dept. of Veterans Affairs housing benefits program in FY99, a 58.4% increase from FY98. This is the same amount approved by the Senate Appropriations Committee and requested by President Clinton. This year, $166.3 million was appropriated.
      House appropriators also okayed $159.1 million for administrative expenses for the benefits program, $300,000 less than this year. However, the amount is consistent with the Senate funding level and the president's request.

VA Loan Eligibility Criteria

Service From

Service To

Active Duty Requirements

September 16, 1940

July 25, 1947

90 Days

July 26, 1947

June 26, 1950

181 Days

June 27, 1950

January 31, 1955

90 Days

February 1, 1955

August 4, 1964

181 days

August 5, 1964

May 7, 1975

90 Days

May 8, 1975

September 7, 1980

181 Days

September 8, 1980

Present

24 Months*

* excepting veterans who served in Desert Storm (Persian Gulf War) , who qualify with only 90 days of active duty.

Selective Reserve and National Guard are eligible if they have six years of service in the reserves. However, service must have been active, which is defined as at least one weekend per month and two weeks of active training each year. Inactive reserve time is not considered as qualifying service

VA Sliding Scale Guaranty

Loan Amount

Guaranty

$45,00 or less

50%

$45,001 - $56,250

$22,500

$56,251 - 90,000

40%

$90,001 - $144,000

$36,000

$144,001 - $203,000

25%

$203,001 or more

$50,750

Partial Entitlements

Subsequent Loan Amount

Combined Guaranty

$144,000 or less

$36,000

$144,001 or more

$50,750

For example: A veteran who requests a loan amount of $144,000 or less, and who previously used $12,500 of unrestored entitlement has $23,500 of remaining entitlement (36,000 - 12,500 = 23,500). However, that same veteran who requests a loan amount of $144,001 or more has $38,250 of remaining entitlement (50,750 - 12,500 = 38,250).

Department of Veteran Affairs, Updates:

• Bill HR 995 increases the maximum VA loan guaranty entitlement from $46,000 to $50,750. This affects only loans above $144,000 used to purchase, construct or refinance existing VA-guaranteed loans to lower interest rates the entitlement remains at $36,00 for all other VA loans.

• Effective December 4, 1994, lenders have the choice of using any appraiser from HUD's new Lender Selection Roster.

• As of September 30, 1995, VA's authority to guarantee adjustable rate mortgages expired. No VA ARM's can be originated until the matter is resolved.