Persian Gulf Conflict. Basically, reservists and National Guard members who were activated on or after August 2, 1990, served at least 90 days and were discharged honorably are eligible. VA regional office personnel may assist with eligibility questions.

Members of the Selected Reserve, including National Guard, who are not otherwise eligible and who have completed 6 years of service and have been honorably discharged or have completed 6 years of service and are still serving may be eligible. Contact the local VA office to find out what is needed to establish eligibility. Reservists will pay a slightly higher funding fee than regular veterans.

Question: How do I get a Certificate of Eligibility?
Answer: You need to submit form 26-1880, Request for Determination of Eligibility and Available Loan Guaranty Entitlement. A copy of the form can be obtained by calling 800-827-1000. Send it to any VA Regional Office. You must include a copy of your DD214 with the form 26-1880. If you are on active duty, you must submit a statement of service signed by, or by direction of, the adjutant, personnel officer, or commander of your unit or higher headquarters showing date of entry on your current active duty period and the duration of any time lost.

Question: I have already received one VA loan. Can I get another one?
Answer: Yes, depending on the circumstances. If you have paid off your prior VA loan and disposed of the property, you can have your entitlement restored for additional use. To obtain restoration of entitlement, you must send VA a completed VA Form 26-1880, along with evidence that the property has been disposed of and the loan repaid in full. This evidence can be in the form of a pay-off statement from the former mortgage company, or a copy of the HUD-1 settlement statement completed in connection with the sale of the property. The application can be presented to any VA Regional Office. A veteran can also obtain restoration of entitlement, on a one-time basis, if the prior VA loan has been paid in full but the property has not been sold.

Question:I have sold the property I obtained with my prior VA loan on an assumption. Why can't I get my entitlement restored to purchase a new home?
Answer: In this case your entitlement can be restored only if the assumer is also an eligible veteran who is willing to substitute his or her entitlement for that of your original entitlement. Otherwise, you cannot have entitlement restored until the assumer has paid off the VA loan.

Question: My prior VA loan was assumed, the assumer defaulted on the loan, and VA paid a claim to the mortgage company. VA said it wasn't my fault and waived the debt. Now I need a new VA loan but am told that I am not eligible. Why not?
Answer: Although your debt was waived by VA, the Government has still suffered a loss on the loan. The law does not permit the your entitlement to be restored until the loss has been repaid in full.

• Get pre-qualified or pre-approved through MainStream to establish your buying power.
• Apply for a Certificate of Eligibility.
  A veteran who doesn't have a certificate can obtain one easily by completing VA Form 26-1880, Request for a Certificate of Eligibility for VA Home Loan Benefits and submitting it to one of the Eligibility Centers with copies of your most recent discharge or separation papers covering active military duty since September 16, 1940, which show active duty dates and type of discharge. This can also be done at time of loan application or pre-approval with your mortgage company.
• Decide on a home to buy and sign a purchase agreement.
• Order an appraisal from VA. (This is done by your mortgage company)
  Most VA offices offer a "speed-up" telephone appraisal system. Call the local VA office for details.
• Apply to MainStream for the loan: While the appraisal is being done, MainStream can be gathering credit and income information.

Before arranging for a new mortgage to finance a home purchase, veterans should consider some of the advantages of VA home loans.

• Most important consideration, no down payment is required in most cases.
• Loan maximum may be up to 100% of the VA-established reasonable value of the property. This amount may be exceeded by the amount of the VA funding fee.
• Flexibility of negotiating interest rates with the lender.
• No monthly mortgage insurance premium to pay.
• Limitation on buyer's closing costs.
• An appraisal which informs the buyer of property value.
• Thirty year and fifteen-year loans
• VA lends for newly built homes. Construction is inspected to ensure compliance with approved plans and specifications and includes a 1-year warranty required from the builder.
• An assumable mortgage, subject to VA approval of the assumer's credit.
• Right to prepay loan without penalty.
• VA performs personal loan servicing and offers financial counseling to help veterans avoid losing their homes during temporary financial difficulties.
• Credit requires 1 year clean or 2 years from a bankruptcy with 3-4 sources of re-established credit. (These sources may include alternatives like telephone, cable, gas and electric payments, etc.)
• VA benefits can be re-used for the purchase of another home as long as the previous home has been sold and that VA loan paid off.

• To buy a home, including townhouse or condominium unit in a VA-approved project.
• To build a home.
• To simultaneously purchase and improve a home.
• To improve a home by installing energy-related features such as solar or heating/cooling systems, water heaters, insulation, weather-stripping/ caulking, storm windows/doors or other energy efficient improvements approved by the lender and VA. These features may be added with the purchase of an existing dwelling or by refinancing a home owned and occupied by the veteran. A loan can be increased up to $3,000 based on documented costs or up to $6,000 if the increase in the mortgage payment is offset by the expected reduction in utility costs. A refinancing loan may not exceed 90% of the appraised value plus the costs of the improvements. Check with MainStreamloans.com or VA for details.
• To refinance an existing home loan up to 90% of the VA-established reasonable value or to refinance an existing VA loan to reduce the interest rate.
• To buy a manufactured home and/or lot.

A funding fee of 2.75% must be paid by all eligible Reserve/National Guard individuals. A down payment of 5% or more will reduce the fee to 2.25% and a 10% down payment will reduce it to 2.0%. The funding fee for loans to refinance an existing VA home loan with a new VA home loan to lower the existing interest rate is 0.5%.

Seller may pay closing costs and pre-paids and/or borrower may borrow funds to pay costs and pre-paids on a VA loan. VA is the only financing that allows unsecured funds (i.e. credit card advance) to pay their costs.

VA Funding Fee Tables for Purchase & Construction Loans
Type of Veteran	Down Payment	Percentage for First Time Use	Percentage for Subsequent Use
Regular Military	None 5% or more (up to 10%) 10% or more	2.15% 1.50% 1.25%	3.3% * 1.50% 1.25%
Reserves/National Guard	None 5% or more (up to 10%) 10% or more	2.4% 1.75% 1.5%	3.3% * 1.75% 1.5%

Note: The funding fee for regular military first time use beginning 10/1/04 is 2.15%.

Note: The funding higher subsequent use fee does not apply to these types of loans if the veteran’s only prior use of entitlement was for a manufactured home loan.