Factors Affecting Your VA Loan Approval

Factors Affecting Your VA Loan Approval

With flexible guidelines and easy eligibility criteria, getting the house of your dreams has never been easy. Available to Veterans, active military members, reservists and family members, VA home loans are mortgage facilities that allow you to purchase homes without downpayment or PMI requirements. And, unlike conventional homes, getting your VA loan approval is quite easy. 


Here are some key factors that could affect the closing of your VA loan-


VA loans are guaranteed by the US Department of Veterans Affairs (VA). Meaning, if the borrower defaults in any way, the department will pay a certain amount back to the lender. 

This certain amount is VA loan entitlement, which is an important determinant of the VA loan approval process. 

If you are using VA loan benefit for the first time or have re-paid the existing loan in full, you might have full entitlement. Meaning, you can borrow as much amount as you desire without any downpayment. 

However, borrowing a loan with partial or downpayment might delay the VA loan approval process. 



You must pass certain eligibility criteria defined by the department to qualify for VA loans. In addition to satisfying the financial requirements and meeting the conditions for VA COE, you must also make sure that the selected property meets all the Minimum Property Requirements (MPRs). 

To speed up the VA loan approval process, you must be ready with all the documents and other requirements to avoid any unnecessary hassles. 



According to the rules defined by the VAA, the borrower must move into the home for which they borrowed the loan. 

Simply put, you can borrow a VA loan only for residential purposes. You cannot borrow them for vacation homes or investment properties. 

So, make sure you know all the specific requirements and uses of VA loans so that your VA loan approval is not affected. 



Though the VA does not require you to have an outstanding credit score, you must have a minimum credit score of 620 or 640 to qualify for a VA loan approval. 

In addition to this, you must also have enough residual income, a suitable debt-to-income ratio and other financial requirements to stand eligible for VA loan approval. 

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