A VA Loan is guaranteed by the U.S. Department of Veterans Affairs.  They are reserved for active duty military and veterans.  These zero down loans typically have more favorable terms when compared to other loan programs.


Qualifying for a VA Loan

The first step in obtaining a VA Loan is to get your Certificate of Eligibility (COE). A COE verifies that you are eligible and is issued by the VA.  As a lender, we have access to your COE and can retrieve it for you.


Other requirements include:

  • The home must be owner-occupied.

  • Meet minimum credit requirements. (The VA has no minimum credit score.  Each lender has their own credit requirements.  Our score requirement is a 500.  These loans can also use non-traditional credit to approve a loan such as utilities, car insurance, cell phone bills, etc.)

  • On time rent payments for the last 12 months.

  • No collections in the past 12 months.

  • A monthly payment - including taxes and insurance - that does not exceed 46.9% of your income.  Other monthly debts, including new mortgage payment, cannot exceed 55%.  Exceptions may be available depending on a buyer's overall situation.


Major Benefits of a VA Loan

  • No down payment is required. (Unless purchase price exceeds the appraised value.)

  • Rates are typically lower than other loan programs.

  • No mortgage insurance is required.

  • It can be reused.

  • Limits the amount you can be charged for closing costs.

  • Assumable - They can be taken over by someone you sell the house to, even if that person isn't a service member.

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