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Getting a VA Loan While Deployed
By Jessica Walrack MONEY RESEARCH COLLECTIVE
If you’re a military service member looking to get a VA loan while deployed, we have good news — it’s very possible. You don’t have to wait until you get back to make homeownership a reality. However, you’ll need to appoint someone to act on your behalf and take a few steps from afar. Not sure where to start? Here’s a breakdown of all you need to know to get a VA loan while deployed.
- Is it possible to get a VA loan while deployed?
- What do you need to get a VA loan while on deployment?
- Steps to getting a VA loan while deployed
- Benefits of getting a VA loan while deployed
- Getting a VA loan while deployed FAQs
Is it possible to get a VA loan while deployed?
It’s possible to get a VA home loan backed by the U.S. Department of Veterans Affairs while you’re deployed. No, you can’t physically walk into a loan office, apply, and sign the papers, but you can appoint someone to handle the process on your behalf. Through the use of a power of attorney (POA), buying a home with a VA loan while deployed can definitely be done.
What do you need to get a VA loan while on deployment?
To get a VA loan while on deployment, you’ll need to find out what type of power of attorney is required in your state. Then you’ll need to grant that type of POA to a person you trust. From there, that person (who’s called your attorney-in-fact) can manage most of the loan process. However, you’ll still need to digitally sign certain papers and have your commanding officer confirm you’re alive before the loan can close.
Steps to getting a VA loan while deployed
Want more details? Here’s a closer look at the steps you’ll need to follow to get a VA loan while deployed.
Check state laws
State laws can vary, so be sure to confirm what type of POA (specific or general) your state requires for a mortgage purchase to be legally enforceable and for a clear title to be conveyed in the event of a foreclosure.
Appoint a Power of Attorney (POA)
Next you’ll need to execute a power of attorney (POA) that complies with the laws of your state so your attorney-in-fact can act on your behalf to get the VA loan and complete the purchase. It’s important to appoint someone you trust completely because you’re granting them permission to make financial decisions and enter contracts on your behalf.
Get a Certificate of Eligibility (COE)
Next, your attorney-in-fact will need to get a Certificate of Eligibility (COE) for you. The COE confirms to lenders that you meet the VA loan requirements and are eligible for a VA loan. Without it, the VA won’t guarantee your loan.
To qualify, you’ll need to be a military service member, veteran, surviving spouse, National Guard member, or Reserve member. Additionally, you’ll need to meet the minimum service requirements, which vary depending on your situation.
Your attorney-in-fact can request a COE online through the eBenefits website or by filling out and mailing Form 26-1880. If you want them to make the request online, they’ll need your eBenefits login credentials.
Find a VA Lender and apply
Once your COE is ready, your attorney-in-fact can begin to look for a VA loan lender. It’s important to understand that not all VA loan lenders are the same. The VA sets various rules for VA loans, but lenders can set their own eligibility requirements and interest rates.
For example, some may approve borrowers with credit scores as low as 600, while others require a score of 670. Additionally, some will offer more competitive interest rates than others. It’s best if your attorney-in-fact shops around to find the best fit for your situation. However, if that’s too much to ask, you can always refinance the VA loan down the road.
Once they’ve found a VA lender, they can work with a loan officer to get you qualified.
Find your next home
If you don’t already know which home you want to buy, your attorney-in-fact will need to work with a real estate agent to find one. The home chosen will have to meet the VA home loan program’s property requirements and pass the VA appraisal.
Provide written consent
Even with the use of POA, the VA requires written consent from the service member (you) in order to close on the loan.
When using a general POA, you’ll need to sign both the Uniform Residential Loan Application and the sales contract. Additionally, your intention to get a VA loan on the specific property will need to be included in those documents.
When using a specific POA, you’ll need to sign off on various aspects of the purchase transaction including the entitlement usage, the purpose of the VA loan, the property identification, the sale price, and the occupancy intentions.
Digital signatures are accepted as original signatures, so you’ll be able to sign from afar.
Verify alive and not MIA
The lender of the VA loan will also need to verify that you’re alive and not Missing In Action (MIA) at the time the loan closes. To do so, your commanding officer, or a person authorized to act for them, will need to verify that you’re alive and that your location is known.
Meet the occupancy requirements
The VA requires those who get VA-guaranteed loans to certify that they’ll personally occupy the home within 60 days of the loan closing. Due to these occupancy requirements, VA loans can’t be used to buy investment properties or second homes — only a home that will be your primary residence.
If you’re an active duty service member, occupancy by a spouse or dependent child can satisfy the requirement. Further, when deployed from your permanent duty station, you’re considered to be on temporary duty status. While in this status, you meet the occupancy requirement even if you don’t have a family member who will occupy the property as their primary residence.
Pay closing costs and mortgage payments
VA loans often don’t require a down payment, but there will be closing costs. When your loan closes, your attorney-in-fact will need access to the funds required to pay the amount due. That amount often includes a loan origination fee, the VA funding fee, the VA appraisal fee, taxes, hazard insurance, and more.
Additionally, once the loan is finalized and the home is yours, they’ll need access to your money in order to pay the monthly mortgage payments, taxes, homeowners insurance premiums, and any other amounts due (bills, HOA fees, etc.).
Benefits of getting a VA mortgage while deployed
Buying a home while you’re deployed can be a good idea for a variety of reasons. For example, if interest rates are at record lows, you may want to take advantage of them. Another scenario is that your dream home comes on the market and you want to scoop it up while you can. Or you may have a family back home that’s ready to move into a new home. With the use of a POA, they won’t have to wait until you return to make that transition.
Getting a VA loan while deployed FAQs
Do you still pay the VA funding fee if you're getting a VA loan while deployed?
Yes, you still pay the VA funding fee if you're getting a VA loan while deployed. The VA does provide exemptions to the funding fee, but deployment isn't one of them.
Can a family member use your VA loan?
Your VA home loan benefit can't be used by or transferred to any of your family members. You will need to buy the home and plan to occupy it as your primary residence within a reasonable amount of time.
How long does it take to get a VA loan while deployed?
Getting a VA loan while deployed can take longer than usual due to the time it takes to execute a power of attorney, sign and return documents, and get the status verification from your commanding officer. However, the extra time those steps take will vary depending on your situation.
Can you get a VA construction loan while deployed?</strong>
You can also follow a similar process to get a VA construction loan while deployed. However, construction loans are much more complex so will likely be more difficult to obtain and manage while deployed.
Summary of our guide to getting a VA home loan while deployed
If you’re looking to get a VA loan while deployed, you certainly can — as long as you qualify for a VA loan and can get approved by a VA loan lender. You’ll need to appoint someone you trust to act as your attorney-in-fact by executing a valid power of attorney. That person can handle most of the process, aside from a few small steps. As long as all goes according to plan, you can use a VA home loan to become a homeowner no matter where you currently are in the world.
Ready to start the process? Browse VA loan mortgage rates and offerings from the 6 best VA loan lenders of 2022.
