RI Veterans: Did you know? 1 July 21 – John A. Cianci

by John A Cianci, Department Veterans Service Officer,

                             Italian American War Veterans (ITAM)

Veteran Home Loan Guarantee

Did you know a Veteran, service members on active duty, National Guard and Reserve members, surviving spouse of a veteran can be purchase a house with no money down or little or no money required at closing?

Did you know a veteran could be eligible for VA home guarantee even if the eligible for VA home loan guarantee had some credit issues?

The main purpose of the VA home loan program is to help veterans finance the purchase of homes with favorable loan terms and at a rate of interest which is usually lower than the rate charged on other types of mortgage loans.

For VA housing loan purposes, the term “veteran” includes certain members of the Selected Reserve, active-duty service personnel and certain categories of spouses.

The loan is not from the VA, but a qualified lender for home mortgages. The VA is guaranteeing the lender of any loss if the borrower does not pay. If eligible for a VA home loan guarantee, you will still have to go thru normal lender loan requirements.

VETTIP – Have the lender provide you other options for the loan. You might find a better rate, however, the lender can not foreclose on a VA home loan guarantee, and VA can offer additional assistance during pandemics and times of emergencies to stop the foreclosure; I have military friends living on St. Croix who have not paid their mortgage since 2017 hurricanes, as the house remains uninhabitable and homeowner awaiting FEMA program for a new roof (yes, 4 years after Hurricane Marie). The VA will not allow the lender to foreclose due to the circumstances.

The first step in seeking a VA home loan guarantee is determining if you are eligible (see eligibility breakdown in FAQ). Like most VA benefits, you must have received an honorable discharge. You can apply for a VA-backed home loan Certificate of Eligibility (COE) online VA Web LGY system, https://lgy.va.gov/lgyhub/, or in some cases, you can get your COE through your lender using our Web LGY system. Ask your lender about this option.

Another option to obtain COE, a Veteran registered with ebenefits.va, can immediately request a COE. To get your Certificate of Eligibility (COE) online, go to the eBenefits portal. If you already have login credentials, click the Login box, and if you need login credentials, please click the Register box and follow the directions on the screen. If you need any assistance, please call the eBenefits Help Desk at 1-800-983-0937. Their hours are Monday-Friday, 8am to 8pm EST.

In addition, you can apply by mail, fill out a Request for a Certificate of Eligibility (VA Form 26-1880) and mail it to the address listed on the form. Please keep in mind that this may take longer than applying online or through our Web LGY system.
Download VA Form 26-1880 (PDF).

Surviving Spouses must apply by mail using VA Form 26-1817, Request for Determination of Loan Guaranty Eligibility – Unmarried Surviving Spouses. If your Veteran spouse died after service, VA must determine that the death was due to a service-connected disability. Please allow 2-3 months for this process unless you know that the decision on service-connected death has already been made. If you can’t print the form, call 1-877-827-3702 and follow the prompts for Eligibility and we will mail the form to you.

VETTIP – COE never expires, so I recommend applying and getting your COE immediately. Having the COE can show your eligibility to a potential seller you have the backing of the VA to obtain the loan to purchase the house.

The next step after obtaining a COE, contact a lender. Show your COE to your lender as proof that you qualify for the home loan benefit. Ask the lender at no cost, to pre-qualify you for a home loan. Being pre-qualified in this current home market could be the difference of the seller accepting your offer over the others. Remember, you’ll go through a private bank, mortgage company, or credit union—not through VA —to get your loan. Lenders offer different loan interest rates and fees, so shop around for the loan that best meets your needs.

Be prepared to pay lender fees. Many lenders charge Veterans using VA-backed home loans a 1% flat fee (sometimes called a “loan origination fee”). Lenders may also charge you additional fees. If you don’t know what a fee is for, ask the lender. In some cases, lender fees are negotiable.

The last step after obtaining the COE and choosing a lender, shop for a home. Look at houses in your price range until you find one that works for you. When comparing homes, be sure to consider what factors are most important to you and your family. These may include factors like how far you’ll need to commute to work and the quality of local schools.

After choosing a home, let the professionals guide you on the lender and VA requirements from signing a purchase and sale agreement until the actual closing for the purchase of the house.

After closing, you’re ready to move into your new home. Congratulations!

Any questions or help needed, contact the Italian American War Veteran Service Officer, John A Cianci, [email protected]

Frequently Asked Questions

• What if I have questions about the loan process?

If you have any questions that your lender can’t answer, please call your VA regional loan center at 877-827-3702. We’re here Monday through Friday, 8:00 a.m. to 6:00 p.m. ET.

• What types of loan options can one use the COE for?

VA backed purchase loan to buy a home.

Interest Rate Reduction Refinance Loan (IRRRL) you can get an IRRRL loan to refinance an existing loan.

Native American Direct Loan (NADL), you can get a NADL loan to buy, build, or improve a home on federal trust land.

Cash-out refinance loan to get cash from your home equity to pay off debts, pay for school, or take care of other needs.

• What are the requirements for a VA Loan approval?  

To get a VA loan the law requires that:

 · You must be an eligible veteran who has available home loan entitlement (except in the case of an interest rate reduction refinancing loan–see “Interest Rates” below.

 · The loan must be for an eligible purpose. The purchase price should not exceed the appraised value. Otherwise, you will have to pay the difference from your own resources.

 · You must occupy or intend to occupy the property as your home within a reasonable period of time after closing the loan.

· You must have enough income to meet the new mortgage payments on the loan, cover the costs of owning a home, take care of other obligations and expenses, and still have enough income left over for family support (a spouse’s income is considered in the same manner as the veteran’s); and

• THE GUARANTY VA-guaranteed loans are made by private lenders such as banks, savings and loan associations, or mortgage companies. To get a loan, you apply to the lender. If the loan is approved, VA guarantees the loan when it is closed. The guaranty means the lender is protected against loss if you or a later owner fail to repay the loan.

• Who is eligible for a VA Home Loan?

You may be able to get a COE if you didn’t receive a dishonorable discharge and you meet the minimum active-duty service requirement based on when you served.

Service requirements for Veterans and service members on active duty

When did you serve?	You meet the minimum active-duty service requirement if you served for at least this amount of time:
Between September 16, 1940, and July 25, 1947 (WWII)	90 total days, or Less than 90 days if you were discharged for a service-connected disability
Between July 26, 1947, and June 26, 1950 (post-WWII period)	181 continuous days, or Less than 181 days if you were discharged for a service-connected disability
Between June 27, 1950, and January 31, 1955 (Korean War)	90 total days, or Less than 90 days if you were discharged for a service-connected disability
Between February 1, 1955, and August 4, 1964 (post-Korean War period)	181 continuous days, or Less than 181 days if you were discharged for a service-connected disability
Between August 5, 1964, and May 7, 1975 (Vietnam War), or February 28, 1961, to May 7, 1975, if you served in the Republic of Vietnam	90 total days, or Less than 90 days if you were discharged for a service-connected disability
Between May 8, 1975, and September 7, 1980 (post-Vietnam War period), or Between May 8, 1975, and October 16, 1981, if you served as an officer	181 continuous days, or Less than 181 days if you were discharged for a service-connected disability
Between September 8, 1980, and August 1, 1990, or Between October 17, 1981, and August 1, 1990, if you served as an officer	24 continuous months, or The full period (at least 181 days) for which you were called to active duty
Between August 2, 1990, and the present (Gulf War)	24 continuous months, or The full period (at least 90 days) for which you were called or ordered to active duty, or At least 90 days if you were discharged for a hardship, a reduction in force, or for convenience of the government, or Less than 90 days if you were discharged for a service-connected disability
You separated from service after September 7, 1980, or After October 16, 1981, if you served as an officer	24 continuous months, or The full period (at least 181 days) for which you were called or ordered to active duty, or At least 181 days if you were discharged for a hardship, a reduction in force, or for convenience of the government, or Less than 181 days if you were discharged for a service-connected disability
I’m on active duty now	90 continuous days

Service requirements for National Guard and Reserve members

When did you serve?	You meet the minimum active-duty service requirement if you served for at least this amount of time:
Between August 2, 1990, and the present (Gulf War)	90 days of active-duty service
Any time period	6 creditable years in the Selected Reserve or National Guard, and one of the descriptions below is true for you At least one of these must be true. You: Were discharged honorably, or Were placed on the retired list, or Were transferred to the Standby Reserve or an element of the Ready Reserve other than the Selected Reserve after service characterized as honorable, or Continue to serve in the Selected Reserve

Any questions or help needed, contact the Italian American War Veteran Service Officer, John A Cianci, [email protected]

EVENTS

July 3rd, 8:30am -10am VETERANS BREAKFAST, Christ Church Parish Hall in Historic Village, 57 Main Street, Swansea MA. FREE breakfast for all veterans and a friend or family member. Connection….Conversation….Friendship

REUNIONS

August 6, 2021, RING Summer Reunion, 11:00am Quonest Officer’s Club, 200 LT James Brown Rd. N, Kingston, RI. Cut-Off date is Aug 3, 2021. Early responses would be greatly appreciated. As always, spouses, friends, guest and significant others are always welcome. It’s an opportunity to reunite with friends whom we served with over the years.  A hot buffet will be included in $27.00 PP cost.  Make checks payable to mail to Bob Antonelli, 9 Hurlburt Ave, Johnston, RI 02919

September 15-20, 2021, USMC Tankers Association Facility: Crown Plaza Providence-Warwick, 801 Greenwich Ave., Warwick RI 02886. Point of Contact Name: John Wear. Point of Contact Telephone: 719-495-5998. Point of Contact Email: [email protected] . Comments: The USMC Vietnam Tankers Association will be holding our 12th biennial reunion. Anyone who served with any of the Marine tank battalions or Ontos units in Vietnam . . . in any capacity is welcome!!!

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John A. Cianci is a Veteran Service Officer. Retired, U.S. Army MSgt., Persian Gulf War and Iraq War combat theater.

Cianci, a combat disabled Veteran, served in Desert Shield/Storm and Operation Iraqi Freedom. His awards include Bronze Star, Combat Action Badge, Good Conduct, and others.

Cianci belongs to numerous veterans organizations – Italian American War Veterans, American Legion, Veterans of Foreign War, United Veterans Council of Rhode Island, and many more organizations. He is an active volunteer assisting veterans to navigate federal and state benefits they have earned. He is Department of Rhode Island Department Commander Italian American War Veterans and Veteran Service Officer.

He is a graduate of Roger Williams University (BS Finance), UCONN business school* (Entrepreneur Bootcamp For Veterans), Solar Energy International Residential, Commercial and Battery Based Photovoltaic Systems certificate programs, numerous certificates from the Department of Defense renewable energy programs, including graduate of the Solar Ready Vets Program.