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VA Loan Eligibility

Find Out If You Are Eligible for a VA Loan

The VA Loan Program is designed for veterans and members who are currently serving in the military. Those who qualify are eligible to receive home financing with no down-payment and little to no closing costs. There are a few conditions and requirements one must meet in order to qualify. Let’s check them out.

To begin with, you must first meet at least one of the following scenarios:

  • Served in an active duty capacity during wartime for at least 90 days consecutively
  • Served in an active duty capacity during peacetime for at least 181 days
  • Served in the Reserves or National Guard for at least 6 years
  • Were not dishonorably discharged
  • Are the husband or wife of a deceased service member who died during duty or who passed away due to a disability suffered during service.

Are there any income requirements associated with a VA home loan?

While there are no minimum income standards to receive a VA mortgage, you must have consistent income and be able to pay for your monthly expenses as well has have a certain percentage of income beyond what is needed to cover your monthly expenses and mortgage payment. This additional amount of income is referred to as “Residual Income” and includes expenses like transportation, food, clothing, and other necessities.

Thanks in part to the Department of Veteran Affairs requiring all applicants to have residual income, VA Loan borrowers are more likely to sustain a good income and save up for emergencies. This has also helped VA Loan borrowers report the lowest rate of foreclosure among all major mortgage lending programs.

You will need to acquire a Certificate of Eligibility (COE) before being approved

Luckily, you don’t need to receive a COE in order to start the application process. A COE is a document issued by the VA that lists the rights you possess pertaining to receiving VA Benefits. To receive this document you can call or visit a VA Loan specialist or print the form (VA Form 261880) from the VA website and send it via mail to the Department of Veterans Affairs.

What additional requirements do private lenders need in order to qualify for a VA Loan?

Once the VA determines those who are eligible for a VA home mortgage, the lender who finances the loan may require certain standards are met before issuing the financing. These requirements may include minimums on your credit, income, and debt.

When you contact a specialist or lender, they can calculate your debt and credit, and run your credit score from the three major credit agencies

6 comments

  1. I need to find out what Home Mortgage benefits I have left. In 1976 – I had a VA loan – this loan has been long satisfied. Please give me some direction so I may determine my status.

    Thank you

  2. Ariel PaganSalgado

    I am currently have a VA Loan fro my current home. Right now am selling my house which is in a contract waiting the buyer approval. What do i have to do to initiated my VA Loan eligibility. Right now i am looking to buy a house once the current one is sold.

  3. cam you pick up a the a home loan that has been default.

    • Veterans Authority

      Veterans can have previously-used entitlement “restored” to purchase another home with a VA loan if: The property purchased with the prior VA loan has been sold and the loan paid in full, or A qualified Veteran-transferee (buyer) agrees to assume the VA loan and substitute his or her entitlement for the same amount of entitlement originally used by the Veteran seller. The entitlement may also be restored one time only if the Veteran has repaid the prior VA loan in full, but has not disposed of the property purchased with the prior VA loan. See here for more information: http://www.benefits.va.gov/homeloans/purchaseco_eligibility.asp

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