Vital Facts about Getting A VA Loan

Vital Facts about Getting A VA Loan

Military personnel and surviving spouses can apply for a VA mortgage when buying a home. The mortgages help the service members get a loan with no down payment. It is a government-backed loan that offers a wealth of benefits for service members and their families. Reviewing vital facts about getting a VA loan shows service members what to expect.

Certificates of Eligibility

The military member must serve at least 90 days of active duty. They must serve at least 181 days of wartime and peacetime duty. The individual must be discharged honorably to maintain their certificate of eligibility. A military spouse is eligible to get a VA loan if their service member died while on active duty. There are clauses in the legislation for VA services of any service member that was discharged dishonorably, but they must apply for an upgrade of status through their local Veterans Affairs office. This is not a guarantee that the upgrade will be granted.

Veterans and active-duty members can get a certificate of eligibility through the Veterans Affairs office in their area if they don’t have a current copy. Service records are necessary to get the certificate, and service members must bring their records when visiting the local office.

Getting a Preapproval for the Mortgage

Getting a preapproval for the mortgage helps the borrower find out the highest mortgage amount available to them. This helps the buyer define a budget and stay within a range that is affordable. The buyer doesn’t have to choose the highest amount, but they can calculate what is most affordable for them according to their budget.

What are the Current Eligibility Requirements for the Loan?

Currently, the eligibility requirements for a VA loan start with a credit score of at least 650. However, most lenders prefer scores that start at least 706. The applicant’s debt-to-income ratio must be no higher than 41%. They must provide at least two years of income statements or two tax returns. Lenders must complete a full evaluation to establish affordability before giving the service member or the surviving spouse a VA loan. Borrowers can get more advice from Dustin Dimisa about VA loans.

Restrictions for the Home

The property must meet strict guidelines for approval through the lender. A stricter property inspection is required for all VA homes, and the home cannot have any major problems. Lenders don’t expect the property to be new, but the HVAC, wiring, and plumbing should be less than about ten years old. The property cannot have any structural issues that could reduce the value of the home. If the property doesn’t meet the guidelines, the buyer must continue their home search until finding a property that meets the requirements.

Veterans and active service members get VA mortgages to buy homes that meet the guidelines for the program. The service members must obtain a certificate of eligibility to give their lender. The applicant must have a qualifying credit score to get the loan. Veterans can learn more about getting a VA loan from their preferred lender today.

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