VA Loans

What is a VA Loan?

The brave men and women of the military who make daily sacrifices in the service of this great country shouldn’t have to worry about affordable housing. That’s why the United States Department of Veterans Affairs has designed a special type of mortgage loan, the VA loan, for active-duty service members, qualifying veterans, and their families.

Understanding VA Loans

These types of loans provide lower rates and have lower qualification requirements than others in order to make homeownership easy and affordable for our nation’s defenders. There’s never been a better time to take advantage of these loans, as VA mortgage loan rates today are exceptionally low. Learn more about them and take advantage of a VA loan today.

VA Loan Requirements

The Department of Veterans Affairs has outlined some of the requirements that make a person eligible for a VA loan. The borrower:

Outside of these requirements, it’s fairly easy to qualify for a VA loan. There is no minimum credit requirement although each lender will typically have their own standards, which fall within the low to mid-600 credit score range.

  • Must have completed at least 90 days of active-duty service during wartime
  • Must have completed 181 days of active-duty service during peacetime
  • If not the soldier, he or she must be the surviving widow/widower of the deceased veteran who died in service or from a service-related injury or disability (also applies to missing soldiers and prisoners of war)
  • Must use the VA loan for their primary residence
  • Must move into their house within 60 days of purchase
     

There’s no down payment requirement, either, but you may need one in order to compete with other prospective buyers. The VA also prefers that your DTI be no higher than 41%. As of this year, VA loan limits are $548,250 but may reach up to $800,000 in counties where the cost of living is higher.

 

There’s no down payment requirement, either, but you may need one in order to compete with other prospective buyers. The VA also prefers that your DTI be no higher than 41%. As of this year, VA loan limits are $548,250 but may reach up to $800,000 in counties where the cost of living is higher.

 

Lenders are required to obtain a Certificate of Eligibility (COE) and this will dictate how much of a loan that the veteran can take out. If the veteran already has one VA mortgage and/or defaulted on one in the past, their eligibility for a new loan will be outline on the COE.

 

VA loans are not available to those who were discharged dishonorably for bad conduct or otherwise, but if you do not meet the requirements for length of service, you may still be eligible. Contact the VA for more information.

 

VA loans are not available to those who were discharged dishonorably for bad conduct or otherwise, but if you do not meet the requirements for length of service, you may still be eligible. Contact the VA for more information.

How to Apply for a VA Loan

Applying for a VA loan follows almost the same process as other mortgages. Find a mortgage company like Mission Loans that can offer VA loans and provide them information on your income, credit history, and more so they can decide whether or not you qualify.   The unique part of the VA loan application process is obtaining a certificate of eligibility. This is a document from the government that verifies your eligibility based on your (or your spouse’s) military service. The certificate can be obtained directly through the VA or through your mortgage lender, who can request this document on your behalf.
Before you even start the FHA loan application, you’ll need a variety of documents to get the process started, including bank statements for the last 30 days, tax returns for the last year, your Social Security number, a government-issued ID, paystubs, and more. To start the application, talk to a qualified, FHA-approved mortgage lender like Mission Loans.

VA Loan Options

There are several VA loan types. The one we’ve been primarily discussing thus far is the VA-backed purchase loan, which is the most commonly used VA loan that helps get veterans into primary residences with better terms and lower requirements. Here are a few other types to be aware of:

Native American Direct Loan Program

If you are a Native American Veteran or are married to one, you may be able to obtain this type of loan to build, purchase, or improve a house that sits on federal land.

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