27 Jan Are You Applying For A VA Home Loan For The First Time?
First-time borrowers are often confused about how VA loan works. We have received many queries from borrowers on VA home loan benefits.
Here are the most common questions of VA loan borrowers –
What is a VA loan?
Through its VA home loan initiative, the Department of Veteran Affairs helps Veterans, active service members, and the Veterans’ families to purchase homes. The loan is provided by private lenders and is backed by the VA.
Your VA loan comes with a one-time upfront cost called VA funding fee. It is calculated using various factors like the loan amount, the Veteran’s service history, etc. If you don’t want to pay an upfront cost, you can request your lender to add the funding fee to the loan amount.
Am I Eligible For A VA loan?
Your VA loan eligibility depends on whether you’re a veteran or an active service member, whether you retired from the National Guard or currently serving.
Here are a few general eligibility criteria for VA loans:
- The applicant must have an uninterrupted service of 90 days during wartime.
- Veterans who joined the army after Aug 2, 1990, can qualify for VA loans if they have an uninterrupted service of 24 months with a discharge type other than dishonorable.
- National Guard members and reservists must have more than 90 days of active service or six years of guard and reserve service.
People who served in specific government organizations, cadets at the service academies, and Veterans’ spouses are also eligible for VA loans. The complete eligibility details are published on the VA website.
How Can I Get My VA Certificate of Eligibility (COE)?
Your VA Certificate of Eligibility confirms that you have qualified for a VA loan. You must obtain COE every time you apply for VA loan benefits.
Here’s how you can get your VA Certificate of Eligibility:
- Online application through the VA’s portal.
- Request your lender to manage it for you.
Your lender may ask you to submit other service-related documents along with your COE.
Should I Also Be Prepared For Financial Underwriting?
Yes. You are supposed to meet the financial guidelines established by VA and your lender. Private lenders evaluate the applicant’s credit score, employment, assets, and income history. You may also need to share the details of your other expenses like child-care costs.
Can I Qualify For VA Loans With Bad Credit?
The VA doesn’t require borrowers to have a specific credit score. However, most private lenders ask for a minimum credit score. You must know your credit status before hunting for a home. If your credit report has errors, you’ll have to work with the credit bureaus and get them corrected.
What’s The Maximum VA Loan Amount I Can Get?
Eligible borrowers can apply for a VA loan of any amount. However, your lender may ask you to make a down payment if your loan amount exceeds the county’s conforming loan limit where the property stands.
We hope you found this article informative. We can connect you to experienced VA loan agents. Call Today!