May 20, 2013
There are many reasons why a veteran might not want to apply for a VA home loan and choose an FHA mortgage instead.
One such reason involves eligibility issues–a borrower who has purchased a home with a VA mortgage in the past may have complications that hold up getting eligibility restored. Others might have a personal preference depending on the circumstances–but regardless of the reasons why a veteran decides to investigate FHA loan options, they are definitely open to those who serve.
What do FHA loan rules say about veterans who want to apply for an FHA mortgage?
According to HUD 4155.1, “Military personnel are considered occupant-owners, and are eligible for maximum financing if a member of the immediate family will occupy the subject property as his/her principal residence, whether or not the military person is stationed elsewhere.”
In that respect, FHA loan rules are similar to VA loan requirements for occupancy–borrowers must occupy the home purchased with an FHA loan as the primary residence. Veterans can, as stated above, have a family member reside in the home in the veteran’s place for deployments or re-assignments.
What does a veteran borrower need to get started with an FHA loan? HUD 4155.1 states, “A completed Certificate of Veteran Status (CVS) (VA Form 26-8261) issued to a veteran borrower is the only document that may be used for program eligibility. The Department of Veterans Affairs (VA) is solely responsible for determining eligibility for a CVS and its subsequent issuance.”
Furthermore, “Requests for a CVS must be sent on VA Form 26-8261a, Request for Certificate of Veteran Status, along with proof of military service, to the appropriate VA Eligibility Center. VA forms are available at http://www.va.gov/vaforms/”.
Do you have questions about FHA home loans or FHA refinancing? Ask us in the comments section.
Joe Wallace has been specializing in military and personal finance topics since 1995. His work has appeared on Air Force Television News, The Pentagon Channel, ABC and a variety of print and online publications. He is a 13-year Air Force veteran and a member of the Air Force Public Affairs Alumni Association. He was Managing editor for www.valoans.com for (8) years and is currently the Associate Editor for FHANewsblog.com.
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