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The VA can make direct loans in certain areas for the purpose of purchasing or constructing a home or farm residence, or for repair, alteration, or improvement of the dwelling. This gave us an evening to say our official good byes. Typically, no credit underwriting is required for this type of loan. Veterans obtain VA-guaranteed loans through the usual lending institutions, veteran home loans including banks, credit unions, and mortgage brokers.

Currently annual adjustments may be up to two percentage points and six percent over the life of the loan. Lenders decide if they need and want private mortgage insurance.

When mortgage insurance or collateral is used in the calculation of the loan-to-value ratio, and such credit enhancement is later released or replaced, the loan-to-value ratio should be recalculated. An eligible active duty Servicemember should obtain and submit to the VA Eligibility Center a statement of service signed by an appropriate military official.

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