Business & Finance Finance

What is Required to Qualify For a VA Loan?

If you're a veteran who's thinking about buying a home or refinancing, you're probably considering a VA loan.
However, you may not know how the qualification process works.
Many veterans think that the process is more complex than it actually is.
There are only a few major areas of qualification criteria, and they are listed below: VA Loan Service Requirements * You must either be currently serving in the United States military or be an honorably discharged veteran.
* You may be eligible if you have served: o 181 days during peacetime (Active duty) o 90 days during wartime (Active duty) o 6 years in the Reserves or National Guard o OR, if you're a surviving spouse of a service member who was killed in the line of duty Certificate of Eligibility * A certificate of eligibility (COE) is your official proof of your service and qualification.
* To obtain your COE from the VA you must complete VA Form 26-1880.
* Your mortgage lender can also assist you in this process.
Approval Requirements Like conventional mortgages, veterans have to meet financial requirements in order to be approved for a VA loan.
Luckily, this government-backed mortgage is much easier to qualify for.
* Credit scores as low as 580 can qualify.
* Proof of sufficient and adequate income to cover the repayment of the mortgage.
* Lists of all accounts and the approximate balances or monthly amounts due.
* Verification of employment over the last two years.
* Approval criteria can differ by each unique situation.
Contact your mortgage lender for more information.
The right mortgage lender can make the VA loan process easy and painless.
Don't be intimidated by the red tape.
Qualifying for a VA loan is a right you've earned as a veteran or service member.
VA loans are one of the only loans on the market today that offer no down payment and allow borrowers to refinance up to 100% of the value of your home.

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