VA Loan Eligibility Criteria
Each and every one of our service men and women have given much to this country. As such, they have the opportunity to purchase a home through a special VA loan program along with a range of benefits. This program grants qualified veterans the ability to buy a house with no money down.
The VA home loan program is intended exclusively for veterans and active duty service members. In order to ensure that this is how the loans are being used, there are certain requirements that must be fulfilled in order to qualify for the loan.
In order to qualify, you must meet one or more of the following requirements:
- Served 90 consecutive days of service during wartime.
- Served 181 consecutive days during peacetime.
- Served more than 6 years in the reserves or National Guard.
- You are a surviving spouse or family member of a deceased serviceman or woman who died in the line of duty or as a result of a service related injury.
As an imperative condition of the loan, a veteran borrower must also have been honorably discharged.
To be granted a VA loan, the borrower must first secure a Certificate of Eligibility (COE) which clearly states what your VA loan entitlements include. A loan specialist may be able to help you secure your COE using the Veterans Information Portal, which is only available to lenders. Generally, you are not required to have your COE when you begin the loan acquisition process because the lender can help you acquire it. Your lender may require you to fill out specific forms like the DD-214 in order to request and receive the COE.
Loan applicants can also obtain a COE on their own by filling out the request form, which can be directly downloaded from the Veterans Affairs Website. Once filled out, it can be mailed directly to the VA for further processing.
Requirements For VA Home Loans
Buyers considering using the VA loan program do not have to have a specific income base in order to be able to utilize the VA loan benefits. Nevertheless, it should be noted that it is expected that borrowers maintain steady, usable income that is sufficient to cover their month-to-month expenditures including the loan payment.
The use of continual income expectancy ensures the likeliness that the borrower can maintain adequate income to manage all recurring financial obligations, including the payment. This also ensures that emergency funds are available if the need should arise.
While it is the VA that decides the criteria for eligibility, the lender who provides the funding for the VA home loan may also present its own criteria that must be met by the borrower. This could include items such as income, outstanding debts, and available credit.
During the VA loan application, your loan specialist will decipher your credit score from multiple sources, and assess your incoming and outgoing financial standings.
If you have any further question regarding your eligibility, or any other questions about the VA loan, please contact us at 1-888-220-2921 and speak to a mortgage specialist.