Home loans make it possible for people to afford houses in Georgia. Typically, the cost of a home is far too high for someone to pay for it upfront. However, lenders provide funds to qualified borrowers to pursue their dreams of homeownership if they repay the loans and interest.
While conventional mortgages are the most popular loan product on the market, some individuals are eligible for Georgia VA loans. These loans are only available to veterans, active-duty service members, eligible family members, and some surviving spouses, making homeownership affordable to those who have served our country.
In some expensive markets in Georgia, such as Atlanta, a VA home loan can make your homeownership dream a reality. This article will cover everything you need to know, including how VA loans work, the down payment, loan limits, what you get with full VA loan entitlement, and more.
What is a VA Loan for Georgia Veterans?
VA loans are unique because the United States government insures them, specifically the Department of Veterans Affairs. The government’s backing allows approved lenders to offer better terms for qualified borrowers and looser requirements.
As a result, a VA home loan is a far more appealing option to buy a house if you are an eligible veteran, active service member, or surviving spouse. The loan limits are flexible enough to purchase the home you want, and you get several benefits non-VA loans don’t provide.
Numerous advantages come with these loan products. The most significant VA home loan benefit may be the zero-down payment option, significantly reducing the upfront costs of purchasing a home.
There are also more competitive interest rates, lowering monthly payments and the total loan amount. Lastly, you won’t have to pay private mortgage insurance even with a low down payment. A loan officer can also explain how VA loans work.
VA Loan Eligibility Requirements for Veterans in Georgia
VA home loans in Georgia benefit qualified borrowers but are reserved for a small percentage of the population. Even if you have spent time in the military, it does not guarantee eligibility for VA mortgage programs. Some qualification standards will determine whether you qualify for Georgia VA loans. It’s essential to understand how VA loans work to determine if you qualify.
Active Duty Service Requirements for Veterans in Georgia
If you want to use a VA loan to buy a house in Georgia, you must meet one of the military service requirements. The general requirements for the program are as follows:
- You served 90 days continuously during wartime.
- You served 181 of active service during peacetime.
- You were discharged for hardship, the convenience of the government, or a reduction in force.
- You were discharged for a medical condition or a service-connected disability.
- You were discharged for early out and served at least 21 months of a 2-year enlistment.
National Guard and Reserve Eligibility for Georgia Veterans
National Guard or Reserve branch members can also apply for the VA home loan program. National Guard members must have served at least 90 days between 1990 and now. If you served at any other period, you must have 90 days of non-training active service or six creditable years in the National Guard and be discharged honorably or placed on the retired list.
Reserve members have similar requirements, with 90 days of service between 1990 and now being enough for minimum eligibility standards. In other periods, you need 90 days of non-training active service or six creditable years in the Reserve, among other conditions.
Surviving Spouse Eligibility for VA Loans in Georgia
Some surviving spouses can apply for VA loans as well. The VA defines a surviving spouse as a person who lived with the veteran from the date of their marriage until the date of the veteran’s death. The veteran must have passed away while serving or from a service-connected disability, been missing in action or a prisoner of war, or been totally disabled and passed away.
Obtaining a Certificate of Eligibility (COE) for Veterans in Georgia
The Certificate of Eligibility (COE) is a document that confirms your eligibility status for a VA loan. You can obtain this document online, through your mortgage lender, or by mail to the nearest VA location. Once you receive the COE, the lender can process your application for a VA home loan.
How Georgia Veterans Can Apply for a COE
The simplest way to request your COE is through the VA’s online portal. You must fill out the requested information, and the VA will assess the application and grant your COE if you are eligible. Most lenders who offer VA loans can order your COE through an online portal like Web LGY. Lastly, you can mail your request with VA form 26-1880 to the nearest regional loan center.
VA Loan Benefits for Veterans in Georgia
Georgia VA loans are designed to make homeownership accessible for veterans, active-duty service members, and surviving spouses. In addition to the benefits of the loan itself, you can also be exempt from property taxes in the Peach State in certain circumstances.
There are also programs for down payment assistance, such as the Georgia Dream Homeownership Program. The Peach Select Veterans Assistance Loan Program is another option for home financing.
Credit Score and Financial Requirements for Veterans in Georgia
Private lenders must assess the risk for each borrower when giving out home loans. Your lender will have specific requirements for your credit score and debt-to-income ratio that affect your VA loan eligibility. Generally, a VA loan's minimum credit score requirements are 620 or above. Depending on the lender, they could make exceptions for a minimum credit score of 500.
The debt-to-income ratio is calculated by dividing a person’s monthly debt by their gross income. You multiply the result to get a percentage. Most lenders want a maximum DTI ratio of 43%, but exceptions could be made up to 50%. You can improve your financial situation by paying off other debts, increasing your income, and decreasing your revolving utilization.
Property Eligibility for VA Loans in Georgia
VA loans cannot be used to purchase any property. In Georgia, most single-family homes, townhomes, and condos are eligible for purchase with a VA home loan. The property must become your primary residence once you have closed the deal. Properties must also pass the VA appraisal process.
There are limits regarding how much you can take out, and it varies by location. A county loan limit in a highly populated area may be higher than one with lower property values. You may be able to take out a loan for part of the purchase price and pay the rest. Simply calculate the county loan limit minus the purchase price to determine how much you must pay.
VA Loan Limits for Veterans in Georgia
VA loan limits do not affect how much you can borrow for a purchase; they only affect how much of the loan amount the VA will insure. In most counties and regions in Georgia, the VA loan limit for a single-family home is $806,500.
More expensive housing markets, such as Atlanta, may have VA loan limits of $1,209,750 for a single-family home. If your loan exceeds the county limit, it could slow down the approval process for a VA backed purchase loan.
VA Loan Funding Fee for Georgia Veterans
The VA funding fee is a mandatory closing cost for all VA mortgages. It is typically a percentage of the home’s sale price between 1.25% and 3.3%. This fee helps fund the VA home loan program nationwide. However, some veterans, especially those with service-connected disabilities, may be exempt from the funding fee.
How to Apply for a VA Loan in Georgia as a Veteran?
Applying for a VA loan in Georgia is relatively simple with the right lender. First, you must select an approved lending partner, just like you would with a non-VA loan. Next, you will gather documentation and request your COE from the VA.
You will then complete the loan application, respond to requests for information from the lender, make an offer on a home, and eventually close the deal. An experienced lender or personnel officer will assist you throughout the process.
They can answer questions about a service-related disability, your interest rate, or what VA entitlement is. They’ll explain the difference between conventional loans and loans backed by the Veterans Affairs. Professionals will ensure you enjoy every benefit possible, such as not paying property taxes. They can also help you navigate the housing market.
Common Challenges for Veterans in Georgia When Qualifying for a VA Loan
Borrowers in Georgia often face similar challenges when applying for VA loans. Different credit score requirements can be confusing, especially if you have poor credit. Your VA loan entitlement affects how much you can borrow, making the mortgage process more complicated. Incomplete documentation will slow down your approval as well.
There are no income requirements for this loan type, but you must prove you can make the mortgage payment when applying for a VA loan. You must also pass a home inspection. Veterans who have already used their entitlement may get a smaller loan because they can only use their remaining entitlement.
Working with an experienced lender with excellent customer service can help you overcome these obstacles. They can explain what you need to know about your DD form.
Conclusion: Securing a VA Loan as a Veteran in Georgia
VA home loans offer significant benefits to qualified borrowers. You can avoid a down payment entirely, access lower interest rates, and be exempt from private mortgage insurance, making homeownership extremely affordable. TrueWay Mortgage can walk you through the application process, answer your questions, and help you understand how VA loans in Georgia work.
Call us today at 404-962-0032 to learn more about purchasing a home with a VA loan.
