VA Mortgage Loans
Who Qualifies for a VA Loan?
Veterans Deserve Rewards
VA Mortgage loans help those who serve our country in a way that many would not or could not. One of their primary perks is access to some of the best mortgage financing available anywhere on the market.
VA home loan allows qualified buyers an opportunity to purchase a home with no down payment. There are no monthly mortgage insurance premiums to pay, limitations on buyer’s closing costs and an appraisal that informs the buyer of the property value.
VA loans are backed by the Department of Veterans Affairs and available to active duty members and veterans of the U.S. military, as well as members of the National Guard and surviving spouses. Cadets, in nearly all military branches, also have VA eligibility.
VA mortgage loans also offer more forgiving credit qualifications than conventional mortgage loans. The VA and mortgage lenders, who specialize in VA loans, understand the challenges that military families often face with deployment and post-deployment. Most veterans must complete a minimum term of qualifying active-duty service to be eligible for a VA loan, though this requirement does have a few exceptions.
Examples of documents required in your preapproval process:
- Tax Returns and W2s
- Pay Stubs
- Bank/Investment Statements
- Evidence of Real Estate Assets
- Employment History
Any veteran applying for a VA Loan must not have been discharged under dishonorable conditions.
Frequently Asked Questions About VA Loans
All types – Single-family, Condo and Townhome are all allowed.
No, VA loans are for primary residences only.
VA loans are eligible for 100% financing on a purchase. Check with your loan officer to see if you qualify for 100% financing and no down payment.
VA loans are more forgiving than conventional financing. While some exceptions may apply, typically the minimum credit score is 620.
VA uses a DTI benchmark of 41%. A debt-to-income ratio above that threshold doesn’t resign you to renting, but you can expect additional scrutiny to get approved.
Similar to conventional and FHA, you will be required to provide full income docs which include 2 years tax returns, paystubs and W-2’s.
The VA does not require reserves to qualify. They do help but you’ll generally only need to cover your cash-to-close to get approved.
You will have to go through the VA portal and a VA approved appraiser will provide the report. Plan for at least 10 days, possibly more.
The legally married spouse of a military member or veteran can co-sign a VA loan as can two unmarried military members. When a military member wants to a non-military, non-married cosigner they can usually do that too, with a few exceptions. Check with your loan officer.