How to get a VA home loan | Eligibility Requirements
The VA home loan mortgage is the superior mortgage program that offers the lowest interest rates & cost of all loan types for veterans, and surviving spouses. This program allows you to qualify for 100% financing with no monthly mortgage insurance and has relaxed credit score requirements.
How does the VA Loan program work?
This is a Government Insured loan, that provides a guarantee to the mortgage lender of any losses that could occur as a result of making the loan. With this additional layer of protection for the lender, the interest rates are very low, and the credit requirements are relaxed. These loans allow you to purchase or refinance up to 100% the value of your home.
How do I qualify for a VA Loan?
To qualify for a mortgage you or your spouse must have served or currently are serving in the military and one of the following:
- Have 90 consecutive days of active duty during wartime.
- Have 6 years or more with Reserves or National Guard or 90 days under Title 32 & 30 days consecutive.
- Have 181 days of of service during peacetime.
- Are a spouse of a deceased veteran and receive spousal support.
How to get approved for a VA home loan?
You should meet the general guidelines below:
- Must have a minimum credit score of 550.
- No over 30 day late rent or mortgage payments in last 12 months.
- No Bankruptcy in last 2 years.
- Have sufficient household income to cover monthly bills. DTI less than 50%
- No open judgements.
How do I get a VA loan?, How do I use my VA Loan?
To get a VA loan, there is an online service where you can simply answer a few questions, and it will determine eligibility, and find the lowest rates and fees from the Nations best lenders. No information is shared or sold. You can APPLY ONLINE here.
What are the required documents needed for final VA loan approval?
- 1 months most recent paystubs.
- Last 2 years IRS tax returns.
- Copy of Social Security for disability and or retirement.
- Copy of Veterans Retirement (if applicable).
- Copy of VA Disability (if applicable).
- Copy of Drivers License.
- proof of Homeowners insurance (refinance only).
- Surviving Spouse certificate of eligibility (COE).
How much VA mortgage loan can I afford?
Your house payment with taxes and insurance, and all other bills totaling on your credit report can not exceed 50% (DTI) of your gross monthly income. This means that if you make $10,000.00 a month then, your new mortgage payments plus any other payments on credit can not exceed $5,000.00.
The best way to determine how much you can afford on a VA loan is to use our online mortgage pre approval (does not require credit report info). You will be asked a few simple questions and then it will show you exactly how you can afford and the lenders lowest interest rates too.
How do I get my VA COE (certificate of eligibility)?
We have access to VA portal, also known as Web LGY, and can provide and share with you at your request. Otherwise, depending on your VA hub location, you will have to call your Regional VA Center nearest you to request it. Should not take more than 24-48 hours to receive if you request by email.
To request by mail, you can down load the VA Form 26-1880 and complete this simple form and send by mail. This link https://www.va.gov/find-forms/about-form-26-1880/ will direct you to the VA.gov website to download this form.
To request online, you can go to: https://bit.ly/3M0gfZD
How long does it take to get a COE (certificate of eligibility)?
It will only take 24 hours at the longest if you contact a VA approved mortgage lender. They can access the VA WEB GLY portal and download your certificate of eligibility. If you elect to contact the Veterans Administration by phone to request your VA Certificate of Eligibility it should not take more than 3 days. You can call the VA Administrative staff at 1-877-827-3702
What is a VA funding fee?
The VA Funding Fee, is a charge that the government collects as an insurance pool of monies to cover any potential losses they may incur by offering some of the lowest interest rates, and relaxed underwriting guidelines on mortgage loans up to 100% financing.
Most mortgage home loans require monthly mortgage insurance for any loan amount that is greater than 80% the value of your home. To consider the economic advantage VA offers its' military veterans lets do some quick math. If a non veteran was to purchase a home, the mortgage lender would require a minimum in most cases of 5% down payment. In addition because the loan to value is greater than 80%, the bank will now require mortgage insurance that will protect the bank from looses of any amount over the 80% value of your home.
This monthly mortgage insurance will be required on your loan until your mortgage balance is at 78% loan to value based upon the value of your home at the time of purchase. In most cases, Veterans that qualify under VA for mortgage loan should follow these basic principals to evaluate when to use VA mortgage loans:
1. Veteran is 100% disabled: VA Advantage: no VA funding fee, and VA interest rates are lower than all other rates.
2. Veteran is not disabled and is financing over 80% Loan to Value: VA Advantage: no monthly mortgage insurance, and VA interest rates are lower than all other rates.
3. Veteran is not disabled and is financing less than 80% Loan to Value: In most cases veteran would want to avoid using VA mortgage, due to the VA Funding Fee amount.
If you are not sure if you should use VA for a mortgage finance on a purchase or refinance, we can provide you with a comparative loan analysis or you can use our loan estimator which will evaluate all loan types and determine the which loan is mathematically correct for you. To evaluate your loan scenario you can apply online here.
How to apply for VA loan with bad credit?
If you have bad credit or slow credit and have rental history or prior mortgage payment history with no 30 day late payments within last 12 months, the good news our multi mortgage lender network has VA loan programs that may allow you to still qualify for a low interest rate va mortgage home loan.
Typically, most mortgage lenders require a minimum of 620 credit score for loan approval. However, we allow credit scores all the way down to 550 credit score to qualify for VA mortgage loan.
For immediate verification of your ability to obtain approval please apply online or you can call one of our agents at 1-866-713-9292
