VA Home Loan Qualifications

The VA Loan remains a great benefit for Veterans and Active Duty Military. Unfortunately, there is plenty of scuttlebutt regarding the complexity of the VA Loan, but fortunately for you, VA Mortgage Center.com and its team of VA Loan Professionals can answer your questions about the VA Loan and break it down it terms that won't leave your head spinning. The following are some basic VA Loan Questions to get you started and give you an understanding of the VA Loan.

How do I know if I'm eligible for the VA Loan?

While a Certificate of Eligibility is your ticket to obtaining a VA Loan, the following guidelines set by the VA will help you determine if you are eligible for a VA Loan:

• 90 days or more of active duty service during war time
• 181 days or more of active duty service during peace time
• No dishonorable discharge
• You are currently active duty and fit into one of the first two criteria
• You are the surviving spouse of a Veteran who died during service or because of service-related injuries and you have not remarried.
• You are a reservist and have served for either a) six years, or b) you have spent at least 90 days deployed to a combat zone.

Of course, every veteran has a scenario unique to them; however the VA Loan Professionals at VA Mortgage Center.com can answer all your VA Eligibility questions and determine if you are eligible for a VA Loan.

Get Started With Your VA Loan Request

You mentioned a Certificate of Eligibility, how do I obtain one?

There's two ways, you can send away for one through the VA, where it can take up to 10 days to receive it, or you can go through your VA Loan Specialist at VAMortgageCenter.Com and they can obtain your COE generally within 24 hours.

If I find I'm eligible for a VA Loan, what's the benefit of getting pre-qualified for a VA Loan?

Getting pre-qualified is crucial because if you're serious about a VA Loan, a pre-qualification gets the process started. A VAMC VA Loan Specialist will get a preliminary determination of your income, which in-turn helps determine how much you can afford for a new house. Our VA Loan Specialist will also explain what the VA Loan process is all about and what you can expect throughout the way. You will also receive paperwork that will outline what the VA Loan consists of, as well as disclosures from VAMC that explain our commitment to you and ensuring that you get the best interest rate possible as well as an affordable mortgage from one of our trusted lenders.

What kind of credit is necessary to qualify for a VA Loan?

There are plenty of items that make the VA Loan such an attractive option, and that includes the relaxed credit requirements that allow you to get a great mortgage with a great interest rate even if you have a less-than-excellent credit score. With conventional loans, a borrower is going to need a 720, and sometimes even a 740 or higher to take advantages of low interest rates. With a VA Loan, in most cases, a borrower can go as low as 620 with one of VAMC's lenders.

I've had a Bankruptcy in the past, does that disqualify me from getting a VA Loan?

No it does not. However, the type of bankruptcy you filed will determine when you are eligible for a VA Loan. As per VA regulations, if you've filed for a Chapter 7 bankruptcy, you must be two years removed from the discharge of the bankruptcy before you're eligible for a VA Loan. With a Chapter 13 bankruptcy, you must be one year removed from the discharge of the bankruptcy before you are eligible again for the VA Loan. Please be advised, just meeting the bankruptcy requirements will not necessarily mean you will qualify for a VA Loan, as you will still need to qualify income and credit-wise. A VAMC Loan Specialist can answer your questions about VA Loan credit requirements and how they are affected by a bankruptcy.

What are the benefits of a VA Loan?

How much time do you have? Seriously, the VA Loan is one of the best loan products available on the mortgage market today. Below are some the advantages of a VA Loan:

• No Down Payment
• No Private Mortgage Insurance
• Relaxed Credit Requirements'
• VA Funding Fee can be financed into the loan
• No prepayment penalty
• Same low rates compared to conventional products
• Low Closing Costs
• VA Mortgages are assumable

What is the maximum amount I can qualify for with a VA Loan?

That's going to depend on where you live. For most folks, the max VA Loan amount is $417,000. However, if you live in a high-cost of-living county such as Contra County in California, the VA Loan limit is $1,094,625 or Middlesex County in New Jersey, where the VA Loan limit is $747,500. As always, a VAMC Loan Specialist can help you determine what the VA Loan limit is for your county.

Are there income requirements for a VA Loan?

Yes, the VA is encouraged by potential borrowers with steady employment. Specifically, the VA and its lenders require that a borrower has two years of consecutive employment in the same field. However, if you have changed fields, but your employment has been consistent, you will want to contact a VA Loan Specialist to explain your specific situation. In most cases, a letter explaining the change in occupations will suffice, but again, it's a sound idea to contact a VA Loan Specialist for trained insight. Second jobs can also be considered, but again, you must show a two year history of working two jobs. Any other form of income, i.e. child support, disability, can be counted towards your income provided you show documentation that you will receive those monies for at least three years after the loan closes. If you have just graduated school and are working, that is generally accepted as well.

Can I just go through the VA to obtain my VA Loan?

No, and that's because the VA doesn't originate loans, it simply guarantees the loan to the lender. That means, in the unfortunate event you were to default and foreclose on your VA Loan, the lender is protected up to $36,000 on the amount of the mortgage by the VA, meaning less risk for the lender. Thus, your VAMC VA Loan Specialist will work with you and determine which of VAMC's trusted lenders will finance your VA Loan. As a VA-approved Lender, VAMC is a broker (we don't charge any brokerage fees) as well as a bank, meaning your VA Loan Specialist has several options to get you the best deal and interest rate as opposed to most VA Lenders, who don't have the expertise or number of quality lenders that you will find working with VA Mortgage Center.com

I had a VA Loan a while back, can I use it again?

Yes, provided you didn't foreclose on the loan. If you paid off the previous loan, then you'll have to restore your eligibility, a step that our VA Loan Specialists can assist you with. Generally, a HUD-1 will be necessary to show that the previous loan was paid in full, or a paid-in-full statement from the lender. If you did happen to foreclose on your previous VA Loan, you are not eligible for another VA Loan.