Delaware Veterans Loans

Delaware Veteran Administration Loans are loans that are offered by Delaware Mortgage Companies but are backed by the United States Veterans Administration. This guarantee allows the lenders to still offer 100% financing to Delaware Home Buyers. The program began in 1944 after President Franklin D. Roosevelt signed the Servicemen's Readjustment Act of 1944, also known as the GI Bill of Rights. Although the program has been adjusted several times since 1944, the purpose remains the same: To ensure that US veterans can secure a long-term loan for a home.

Prospective candidates for VA loans must meet the military service requirements set forth by the VA. The requirements depend on when you served, how long you served and how you were discharged. To determine if you are eligible for a Delaware Veterans loan, it is best to look on-line at the Veteran's Administration website: www.va.gov . The guidelines are listed under the "Home Loan" benefit section and clearly outline who is eligible to obtain VA financing. Qualifying candidates include Retired US Veterans with certificate of eligibility, active duty with proof of military service, unmarried surviving spouse of veteran deceased from service related death.

Eligible Branches of Service

Army
Air Force
Marine Corps
Navy
Coast Guard
Public Health Service
National Oceanic and Atmospheric Administration
Highlights of VA Loans

Benefits of a Delaware VA Loan:
No Monthly Mortgage Insurance
No Down Payment Required for loans of $417,000 or less
Will lend a maximum of $1,000,000
Allowed to finance VA funding fee into the loan
No Pre-payment penalties
Lower Closing Costs than Conventional Loans
Seller Can pay up to 4% in closing costs or pre-paid items
Very Competitive Mortgage Interest Rates

The maximum loan limit for a Veterans Loan is $417,000 for a no-money-down loan on a single-family home, but additional jumbo amounts are available to qualified borrowers up to $1,000,000.

Jumbo VA loan rules:

For loan amounts above $417,000, a 25% down payment is required.
The VA funding fee must be paid up front and cannot be financed.
Other restrictions may apply.

The Delaware VA Loan Funding Fee is required by law and varies according to the type of loan, military service status, and other factors. A first-time VA home loan borrower with a no-money-down loan currently pays an amount equal to 2.15% of the loan. This amount is subject to change depending on legislation and other factors. Some borrowers are exempt from the funding fee:

Veterans on VA compensation for service-related disabilities.
Veterans who would receive compensation for service-related disabilities if they didn't draw retirement pay.
Surviving spouses of military members who died in service or from service-related disabilities.
When necessary, the VA reserves the right to make final exemption determination on a case-­by-case basis.

VA determines your eligibility and, if qualified, a certificate of eligibility (COE) will be issued. Your mortgage lender will need this document in order to provide you with a VA Loan. You may be able to request a certificate of eligibility through your lender. In some cases, however, you may have to request a certificate by sending in a request for the certificate of eligibility (and any required supporting evidence) to an eligibility center. Under "normal" circumstances, you should receive a response within 10 days. Because this time may vary, it is strongly recommended that you allow your lender to order (ACE) - Automated Certificate of Eligibility. When you receive your COE you will get an entitlement amount of $36,000. This is full entitlement amount and doesn't mean you are limited to only a loan of $36,000. You are still able to borrower a 100% up to $417,000.