When it comes to purchasing a home in Alaska, there are many mortgage types to choose from, all with different requirements and terms. For instance, an FHA loan allows Alaskan buyers to make a home purchase with as little as 3.5 percent down. We are happy to help you become a homeowner this year and one way you may be able to do so is through a VA loan.
The VA helps servicemembers, Veterans and eligible spouses become homeowners with a variety of benefits, including a home loan guaranty benefit. VA loans are provided by private lenders—banks and mortgage companies—and as the VA guarantees a portion of the home loan, the lender is able to provide servicemembers with more favorable terms.
What does it take to qualify? The VA requires the following:
- Sufficient Income
- Suitable Credit
- Certificate of Eligibility (COE)
To obtain the COE, you must have been discharged under conditions other than dishonorable and meet the following service requirements for Veterans:
- WWII – Active Duty Dates 9/16/1940 – 7/25/1947 – Minimum Active Duty Requirement: 90 Total Days
- Post-WWII – 7/26/1947 – 6/26/1950 – Minimum Active Duty Requirement: 181 Continuous Days
- Korean War – 6/27/1950 – 1/31/1955 – Minimum Active Duty Requirement: 90 Total Days
- Post-Korean War – 2/1/1955 – 8/4/1964 – Minimum Active Duty Requirement: 181 Continuous Days
- Vietnam War – 8/5/1964 – 5/7/1975 *For Veterans who served in the Republic of Vietnam, the beginning date is 2/28/1961 – Minimum Active Duty Requirement: 90 Total Days
- Post-Vietnam War – 5/8/1975 – 9/7/1980 *The ending date for officers is 10/16/1981 – Minimum Active Duty Requirement: 181 Continuous Days
- 24-month rule – 9/8/1980 – 8/1/1990 *The beginning date for officers is 10/17/1981 – Minimum Active Duty Requirement: 24 Continuous Months OR the full period (at least 181 days) for which you were called or ordered to active duty
- Gulf War – 8/2/1990 – Present – Minimum Active Duty Requirement: 24 Continuous Months OR the full period (at least 181 days) for which you were called or ordered to active duty
Or the following service requirements for National Guard and Reserve Members:
- Gulf War – Active Duty Dates 8/2/1990 – Present – Minimum Active Duty Requirement: 90 Days Active Service
Or the following requirements for Active Duty Members:
- Any – Minimum Active Duty Requirement: 90 Continuous Days
You may still be eligible for a VA loan if you were discharged due to hardship, the convenience of the government, reduction in force, certain medical conditions or a service-connected disability.
What are the benefits of a VA loan?
Competitive interest rate
- No downpayment
- No private mortgage insurance (PMI)
- Option to take cash out of your home equity to pay off debt, fund schooling or make home improvements
What can I use my VA loan for?
- Buy a home
- Build a home
- Purchase and improve a home simultaneously
- Improve a home by installing energy-related features or energy-efficient updates
- Buy a manufactured home and/or lot
We have helped numerous families with their military relocation to Alaska and if you will be stationed in the area for at least three years, homeownership may be a great opportunity for you! Reach out to us today and a Northern Edge buyer specialist would be glad to walk you through which available homes may best suit your needs.
We look forward to hearing from you!