VA Benefits Briefing
Transition Tools for a Brighter Future
Loan Guaranty Service
VA Benefits Briefing
This document contains U.S. Department of Veterans Affairs proprietary
business information and may not be reproduced without permission.
What is a VA Guaranteed Home Loan?
VA-Guaranteed Home Loans are made by private
lenders, such as banks, mortgage companies and credit
unions. These loans are made to eligible Veterans for
the purchase of a home for their own personal
occupancy.
VA guarantees the loan to protect the lender against
loss if the payments are not made.
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What can a VA-Guaranteed Home Loan be used for?
VA-Guaranteed Home Loans can be used to:
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Buy or construct a home
Buy a condo
Buy a manufactured home and lot
Repair, alter, renovate and improve a home
Refinance an existing lien
Can be used for property located in the US, its
territories or possessions
Cannot guarantee Business Loans (contact SBA)
Cannot guarantee Farm Loans (unless residence)
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What are some advantages of a VA-Guaranteed Loan?
Advantages of VA-Guaranteed Home Loans
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Generally no down payment
No Private Mortgage Insurance (PMI)
Freely negotiable interest rate
No prepayment penalty
Benefit never expires - can be used more than once
Entitlement may be restored
VA assistance to Veteran borrowers experiencing
temporary financial difficulty (877) 827-3702
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Loan Limits
There is no maximum loan amount; however,
there are maximum loan “limits” – loans above
this limit will likely require a downpayment. Loan limits
vary by county.
 Minimum guaranteed loan limit is $417,000
(assuming full entitlement)
 Find the county loan limit:
http://www.benefits.va.gov/homeloans/
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Native American Direct Loans
VA makes direct loans to Native Americans living on
Trust Land (reservations, homelands)
 Maximum loan limit is the same as for guaranteed
loans
 Veterans must meet credit and income qualifications
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Funding Fee
The law requires a funding fee to be paid on VA loans
 Fee ranges from .5% to 3.3%, depending on
loan type and if first-time or second-time user
 Fee can be included in the loan
 Fee is waived for Veterans entitled to VA
disability compensation* and surviving
spouses in receipt of Dependency and Indemnity
Compensation
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What are the steps to obtaining a home?
Here are the typical steps to obtaining a VA-Guaranteed
Home Loan:
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Apply for a Certificate of Eligibility (eBenefits)
Obtain pre-approval from a lender
Find a property to buy
Complete application process with lender
Lender obtains a VA appraisal
Close the loan and move in
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Eligibility
 Active Duty: Generally, must serve 24 months of
continuous active duty or the full period for which
called or ordered to active duty (at least 90 days)
unless discharged for a service-connected disability.
 Guard/Reserve: Requires a total of 6 years of service
unless activated or discharged for service-connected
disability.
 Certificate of Eligibility (COE) shows
Servicemember’s or Veteran’s eligibility for the
benefit - COE must be updated upon
separation/retirement
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Requirements
 Must satisfy eligibility criteria
 Loan must be for eligible purpose
 Must occupy or intend to occupy (spouse and
dependent children may satisfy occupancy
requirement)
 Income must be stable, reliable, and sufficient
 Must have satisfactory credit
 Must satisfy lender requirements
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Useful Information
 Loan Guaranty Service:
http://www.benefits.va.gov/homeloans/
 VA Pamphlet 26-7, VA Lender’s Handbook
 Title 38 – United States Code, Chapter 37
 Regional Loan Centers:
http://www.benefits.va.gov/homeloans/rlcweb.asp
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Specially Adapted Housing/Special
Home Adaptation Grants
 SAH grant programs improve the quality of life for
severely disabled Veterans by allowing them to live more
independently in their homes.
 Over the last two years, the SAH workload has
increased significantly; the number of grants approved
has increased over 50%.
 Legislative changes have expanded eligibility criteria,
allowed for multiple grant uses, increased grant amounts
and allowed for yearly adjustments based on a cost of
construction index.
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Specially Adapted Housing/Special Home Adaptation
Specially Adapted Housing (SAH)/Special Home
Adaptation (SHA) Grants can be used to help
accommodate home, purchase adapted home,
purchase land to build home, build home on land owned
by veteran.
Temporary Residence Adaptation (TRA) Grants can be
used to modify the home of a family member.
CURRENT Maximum Amounts
 SAH: $64,960
 SAH TRA: $28,518
 SHA: $12,992
 SHA TRA: $5,092
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SAH Program Structure
38 USC §2101(a) Specially Adapted Housing
(SAH) Grant Eligibility
Loss or loss of use of both lower extremities
Blindness in both eyes plus loss of one lower extremity
Loss or loss of use of one lower extremity together with:
1. residuals of organic disease or injury, or
2. the loss or loss of use of one upper extremity
Loss of both upper extremities, at or above the elbows
Certain severe burn injuries
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Specially Adapted Housing
Public Law 112-154 changes
 Applies to Veterans who served and became
permanently disabled after September 11, 2001
due to the loss or loss of use of one lower extremity,
severely affecting the functions of balance or propulsion
 Expires September 30, 2013
VA Benefits Briefing
SHA Program Structure
38 USC §2101(b) Special Housing Adaptation
(SHA) Grant Eligibility
 Blindness in both eyes with 20/200* visual acuity or
less
 Anatomical loss or loss of use of both hands
 Certain respiratory ailments
 Certain severe burn injuries
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SAH/SHA Grants
 Can be used a maximum of 3 times
 Can be adjusted annually based on the Turner Index
 In FY2010, VA approved
 1,421 §2101(a) grants totaling over $64.97M
 128 §2101(b) grants totaling over $1.17M
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Temporary Residence Adaptation Grant
38 USC §2102A Temporary Residence Adaptation (TRA)
Grant Eligibility
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Based on eligibility for 2101(a) or 2101(b) grant
Used to modify the home of a family member
Can be used only once
Is counted as one of the three allowable uses
Is deducted from the total maximum grant amount*
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Regional Loan Centers
St. Paul
Cleveland
Denver
Roanoke
Phoenix
Atlanta
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St. Petersburg
Houston
Honolulu
VA Benefits Briefing
Questions?
You can find a list of RLCs and Specially Adapted Housing
agents (and their contact information) at:
http://benefits.va.gov/homeloans/
Betty Rhoades
Chief, Specially Adapted Housing
betty.rhoades@va.gov
Thank you for your time!
VA Benefits Briefing