National Guard VA Loan Requirements

The VA home loan program offers veterans, active service members, and surviving spouses with many useful benefits that can help save them thousands of dollars in closing costs and throughout the life of their loan. What some National Guard members might not know is that they are also eligible to receive these benefits provided through the VA loan program as long as they meet specific service requirements. 

If you’re a National Guard member looking to explore your VA home loan options, call HomePromise at 800-720-0250! Our mortgage experts will listen to your unique circumstances, answer any questions you might have about the lending process, and provide you with a free interest rate quote.   VA loans for National Guard members can be complicated so give us a call today for help.

Army National Guard VA Loan Eligibility

At HomePromise, our mortgage experts are often asked if National Guard members are also eligible for VA loans. The answer is yes, as long as the National Guard member meets qualifying loan requirements and also meets the service requirements that are set forth by the Department of Veterans Affairs. You earned your home loan benefits through your national guard service.

“The whole process was great!” – Michael W.

In order to apply for a VA home loan as a member of the National Guard, you must have completed at least 6 years of service, been honorably discharged for a service-related disability, or completed at least 90 consecutive days of active duty service.  The service requirements National Guard members must meet in order to be eligible for the VA home loan program are detailed in the below chart.

One of the key features of the VA home loan benefit is that you qualify as a National Guard member if you serve at least 90 days of active duty service.  There are also some complicated VA rules regarding the selected reserve and title 32 orders that may help you qualify.  If you did serve in the selected reserve or you were subject to title 32 orders, please call and we will help you see if you qualify.  

Competitive Origination Fees for National Guard VA Loans

When applying for a VA home loan as a National Guard member, it’s important to understand the different options available to you. In addition to our flexible, knowledgeable, and compassionate services, HomePromise proudly offers National Guard members a highly competitive loan origination fee. No matter the total loan amount or the type of loan, our HomePromise VA loan origination fee is $590.

Call HomePromise at 800-720-0250 to speak with our mortgage professionals about receiving a free quote and conveniently applying for a VA home loan. 

We want National Guard members to have a full understanding of the significant impact loan origination fees can have on the money due at closing. Knowing what’s a reasonable loan origination fee to pay can help save you money when purchasing your home. Some lenders charge as much as 0.5%-1% of the total loan amount (1% of a 300,000 loan amount is $3,000), and many lenders charge more than $1,000 for loan origination fees. 

While it might be tempting to work with a lender who doesn’t charge any loan origination fees, the lender will most likely make you pay for it in other ways. Lenders who do not charge origination fees will typically give you a higher interest rate in order to make up for not charging you a loan origination fee or you will pay higher fees that go by other names like an application fee, commitment fee, underwriting fee or the like.

So, even though you’re not paying a loan origination fee at closing, you may end up paying other high fees or be paying more over the life of your loan due to your higher interest rate. It might feel uncomfortable to pay more money at closing, but it may save you a significant amount of money in the long run to have a lower interest rate.

Active Duty National Guard VA Loan Benefits

The VA loan program provides a variety of benefits for eligible National Guard members. These benefits help veterans increase their buying power when searching for a home and enable them to save thousands of dollars over the life of their loan. The benefits of the VA loan program are available to eligible National Guard members for life. 

The cost-saving benefits of the VA home loan program include competitive interest rates, no monthly private mortgage insurance, and no required down payments. Other helpful benefits include options for people with lower credit scores and limits on the amount of closing costs. 

Not needing a down payment when purchasing your home can help you keep several years of savings in your pocket. Down payments typically range from 3.5% up to 5%, which means National Guard members can save thousands of dollars by not needing a down payment when purchasing a home. 

Another important benefit of the VA home loan program are the options it provides for National Guard members with lower credit scores. If you have a lower credit score, you’re more likely to receive a higher interest rate or you might even be denied when applying for a mortgage through conventional routes.

Through the VA home loan program, National Guard members with poor or fair credit scores may still qualify for a mortgage and receive a competitive interest rate. This provides you with significant cost savings over the life of your loan. 

To learn more about how the VA loan program saves National Guard members money, call HomePromise at 800-720-0250! We listen to the unique circumstances of each National Guard member before determining their eligibility and providing them with a free quote.  We will answer your questions about qualifying for VA home loan benefits.

Are National Guard Members Exempt from the VA Funding Fee? 

While there are a variety of cost-saving benefits available through the VA home loan program, National Guard members are not exempt from paying the VA funding fee unless you have a service connected disability. How much you will have to pay for the VA funding fee depends on your total loan amount, whether you’ve used the VA loan program before, and your down payment. 

National Guard members do have the option to reduce the amount they have to pay for the VA funding fee by having a down payment of at least 5%. If you’re using the VA loan program for the first time, your VA funding fee is lower than if you were a return user. The VA funding fee equals 2.3% of your total VA home loan amount. If you’ve previously obtained a VA home loan, your funding fee amount is 3.6% of the total loan amount. 

Let HomePromise Help You Determine Your Eligibility for the VA Home Loan Program

HomePromise provides veterans, active duty service members, and their families with knowledgeable guidance, friendly customer service, and flexible options when applying for a VA home loan. You have the option to apply over the phone or online based on which method is most convenient for you.

We will help you get your certificate of eligibility (COE) since we have direct access to the VA website that issues the certificates.  The COE will have your certificate of eligibility code showing you are an eligible National Guard member.

HomePromise is an approved lender with the U.S. Department of Veterans Affairs to provide VA home loans so you can access your home loan benefit and find out if you qualify for a VA loan. Call HomePromise at 800-720-0250 to receive a free quote and to learn more about how the VA home loan program can save you money!  If you submit your loan application today we may be able to close your VA loan in the next 30 days!