VA Loan Eligibility

1. The Ultimate Guide To VA Loan Eligibility Issued to Veterans, active military members and some selected family members, VA loans are the mortgage facilities offered by the US Department of Veteran Affairs. They come with numerous benefits like lower interest rates, no PMI requirement and 0 down payment options, given that you can meet the VA loan eligibility guidelines. Eligibility Criteria Basic Requirements The eligibility criteria depend upon various factors. However, here’s a brief of the most basic requirements you are expected to meet to reap the benefits of VA home loans.

2. Either of the following statements must be true- 1.You have actively served at least 181 days on-field during peacetime, OR 2.You have actively served at least 90 days during wartime, OR 3.You have at least 6 years of experience as a national guard or reserves member. 4.You are the surviving spouse of a military member who died while rendering his services, was a prisoner of war or went missing in action. Certificate of Eligibility (COE) After meeting the above-stated VA loan eligibility criteria, you must apply for the certificate of eligibility (COE). This would require you to submit documents that could demonstrate the type of services you rendered. The documentation required would differ according to the varying situations. To apply for COE as a Veteran, you need to submit VA Form 214, which will verify your grounds of discharge. However, in the case of an active military member or current reserve member, an applicant must produce a statement of service, which would include your name, birth date and social security number. Applying for COE as a retired reserve member would require you to submit the NBG Form 22, NGB Form 23, proof of the character of service, report of separation and record of service.

3. Other VA Loan Eligibility Requirements Along with meeting the eligibility requirements and applying for COE, you are expected to meet other service requirements as well. 1.Credit Score- Although the VA doesn’t require you to have a good credit score, the private lenders might require you to have a minimum score of at least 600–620. 2.Type of the Property- The property must be your primary residence. You cannot apply for VA mortgages to buy vacation homes or investment property. 3.Income- Your lender will evaluate your income to calculate your debt-to-income ratio, which would represent your residual income and your ability to pay back the loan. Funding Fees- The funding fee is the fee applied to every purchase through VA mortgage. It can range up to 1.25%-3.3% on average. This cost depends entirely upon the loan limit, type of service, financial conditions and other circumstances. This VA loan eligibility factor might seem like a lot but you can always add it to the loan amount and pay monthly instalments each month if you can’t pay the money upfront.