Applying For A VA Insurance – Is It Difficult?

Mortgages secured by the U.S. Department of Veterans Affairs have been a popular way for veterans and active duty members to purchase their first homes for more than 70 years. Since home insurances are secured, many lenders are eager to offer low-cost home insurances to veterans. Although it is not difficult, the application process is somewhat different from that of traditional insurances, and many lending institutions have specially trained departments or staff to assist with the required documentation.

eligibility – eligibility

If you have been a member of the military on active duty for at least 90 days, you qualify for a VA secured mortgage. Likewise, veterans who have served between 90 and 181 days of continuous service, depending on the time period, are eligible to apply for these insurances. National Guard service members are also eligible for a home insurance if they are currently serving or have served six years, are discharged or are on the retired or reserve list. Under certain conditions, spouses of military members may also qualify for a VA insurance.

Certificate of Eligibility

Applicants are required to document their service in the military with a certificate of eligibility. The certificate is issued with a number of different types of proof:

  • DD Form 214 for Veterans Indicating Nature of Service and Reason for Dismissal

  • For current service members, the current service statement signed by the unit commander, assistant, or personnel office

  • For current National Guard members, a service statement signed by a unit commander, aide, or personnel affairs office

  • For demobilized National Guard personnel who have never been activated, NGB Form 22, Dismissal Report and Service History

  • A surviving spouse who does not receive benefits must file a VA Form 21-534

  • A surviving spouse receiving benefits must file VA Form 26-1817

Additional requirements

In addition to the Certificate of Eligibility, applicants for a VA secured mortgage insurance must submit:

  • Documentation of sufficient income to bear the insurance installments

  • Good Credit History – VA lenders set their own minimum credit history requirements for a insurance

  • Proof that the property can be occupied – VA insurance benefits must go to properties suitable for occupancy, such as single-family homes, condominiums, townhomes, and multi-family dwellings.

  • Intent to occupy the property – first time home insurance applicants must confirm their intention to occupy the property.

  • Property appraisal to ensure the property is adequately valued for the insurance amount.

close sale

Applicants are encouraged to compare insurances from a number of lenders to ensure the best terms. After the applicant is approved for a VA secured mortgage insurance, he or she must close the sale of the property, provide proof of homeowners insurance for the property and pay closing costs. These closing costs are regulated by the VA. The title deed is then issued and insured by a title insurance company to prevent any further claims on the property.

Although the process may seem daunting for first-time borrowers, lending institutions have created protocols for VA insurances that streamline the application process so that veterans and active duty members can take advantage of this valuable advantage.