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All About VA Home Loans

Posted by latoya.dewey@kw.com on March 20, 2020
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Commonly Asked Questions about VA Home Loans

What are the VA loan credit and income requirements?

The VA itself doesn’t have a minimum credit score requirement. Instead, it requires lenders to look at the overall loan profile.

However, mortgage lenders may set their own underwriting requirements, and many lenders want to see a credit score of 620 or higher.

The VA has income guidelines it wants underwriters to consider, to make sure the borrower’s income is stable and can cover the loan payment, debts and other living expenses.

VA guidelines suggest that the debt-to-income ratio generally should be no more than 41 percent. However, if the ratio is greater than 41 percent, lenders can still approve the VA loan by considering the borrower’s other credit factors.

Who is eligible for a VA Loan?

-Veterans

-Active duty service members

-Current or former National Guard or Reserve members who have been activated for federal service

-Current National Guard or Reserve members who have never been activated for federal service

-Discharged members of the National Guard who have never been activated for federal service

-Discharged members of the Selected Reserve who have never been activated for federal service

-Surviving spouses in receipt of D.I.C. (Dependency & Indemnity Compensation)

-Surviving spouses who aren’t receiving D.I.C. compensation

How long do I have to serve in order to qualify for a VA Loan?

-181 days during peacetime (active duty)

-90 days during wartime (active duty)

-6 years in the National Guard or Reserves

-Spouse of service member who died in the line of duty or due to a service-connected disability

What kind of house can I buy with a VA Loan?

Single-family homes, town homes and condominiums (with VA approval) are eligible, provided you agree to occupy the property. 

Do I have to make a down payment with a VA Loan?

No, in order to help as many Veterans as possible to buy a home, there is no VA down payment requirement. You can always make a down payment if you want to, but you don’t have to.

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