09 Aug Satisfying the VA Loan Eligibility- From COE to MPRs
When it comes to VA mortgages, getting your quote requires you to pass the VA loan eligibility criteria defined by the US Department of Veterans Affairs (VA). To stand eligible for these home loans, you must also satisfy your lender’s financial requirement and ensure that the selected property meets all the Minimum Property Requirements (MPRs) defined by the VA.
Here’s an overview of everything you’ll be needing to qualify for these loans-
OBTAINING THE CERTIFICATE OF ELIGIBILITY
One of the most important documents to satisfy VA loan eligibility is the Certificate of Eligibility (COE).
You must pass the following criteria to obtain your COE.
One of the following must be true-
- You are an active/former military member who has served at least 181 consecutive days during peacetime or 90 consecutive days during wartime, OR
- You are a national guard/reservist with at least six years of experience, OR
- You are a survivor of a service member who either went MIA, was a POW or died in the line of service or from a service-related ailment.
After ensuring your VA loan eligibility for COE, you can apply through either of the following ways-
- You can ask your lender to apply it for you.
- You can apply online.
- You can mail the application form to the VA.
FINANCIAL REQUIREMENT
In addition to meeting the VA loan eligibility for COE, you must also satisfy the financial requirements of your lender.
Though the VA does not require you to have an excellent credit score, you must have a minimum of 620-640 credit score to qualify for the loan. You must also have enough residual income, a desirable debt-to-income ratio and a fair credit history.
MINIMUM PROPERTY REQUIREMENTS (MPRs)
MPRs are certain requirements the VA follows to ensure that the house is safe for living. The VA ensures the property meets MPRs during the VA appraisal. In addition to estimating the property’s actual worth, the VA appraiser will also ensure that the house meets ALL the MPRs defined by the department.
There are several MPRs like the house must have-
- Enough space for living
- Adequate heating system
- No hazardous waste
- Adequate sewage and sanitation system, etc.
However, you must note that an appraisal is NOT a home inspection and the department will not be responsible if the house is not up to your expectations. It is only conducted to determine the house’s condition and ensure everything is according to the CA loan eligibility criteria.
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