Eligibility- Who Qualifies for the VA Home Mortgage?
As talked about in a previous post (click here), the VA Mortgage Loan is a useful tool for anyone who has served in the military and is looking to purchase a home. If you are a member of the military, veterans, reservists or National Guard then you would be eligible to apply for a VA loan. Additionally, spouses of deceased military members can also apply if their spouse passed away while on active duty.
Someone who is currently an active member of the armed forces can qualify for a VA loan after only six months of service. However, if you are a member of the armed forces reserves or the National Guard you must wait six years to be eligible for the VA loan. Reservists, members of the National Guard and active-duty members generally are eligible after 90 days of service during war periods. The rule of thumb being that if you have served on foreign soil, the more likely you will be eligible for the VA loan.
If you are looking to obtain financing through the VA, an important document that is needed is the certificate of eligibility. The certificate of eligibility is a document that the Veteran’s Administration will issue to you when they determine you qualify for the VA loan. If you are looking to use the VA for your next mortgage, you must complete the VA Form 26-1880 which is the Request for a Certificate of Eligibility for VA Home Loan Benefits. When the VA confirms your service you will be issued the Certificate of Eligibility that verifies to a lender you are eligible for the VA loan.
The VA does not require a minimum credit score in order to obtain a VA loan however the minimum credit score will vary depending on the lender that will service the loan. Most lenders require a credit score of at least 580.
Types of Fees Associated in the VA Loan
While less expensive to finance than conventional mortgages, the VA loan still requires a small one time funding fee depending on your status in the military and the amount of money you are willing to use as a down payment on the home. If you are using the VA to finance your mortgage for the first time and would like to forgo a down payment, you are required to additionally finance 2.15% of the loan amount at closing of your mortgage (although for disabled veterans this is waived). If you have money saved up and are able to put down at least ten percent then the funding fee percentage drops to 1.25 of the loan. Reservist and members of the National Guard additionally will pay a higher percentage rate then active-duty members will.
What will I need in order to qualify for the VA Home Mortgage?
· Social Security number
· Residence addresses for the past two years
· Names and addresses of your employers over past two years
· Your current gross monthly salary
· Names, addresses, account numbers and balances on all checking and savings accounts
· Names, addresses, account numbers, balances and monthly payments on all open loans
· Addresses and loan information of other real estate owned
· Certificate of Eligibility and DD-214 (for veterans only)
· W2's for the past two years and current check stubs
· For self-employed individuals, you will need to provide personal tax returns for the past two years, current income statement and balance sheet for the business
As always if you have any questions about the VA home mortgage or any other types of mortgages, please contact me and i'll be glad to help! Thanks again for reading!
As a mortgage lender, I take pride in helping all of my clients through the home buying and refinancing process. As a former real estate agent, I know all aspects of a real estate transaction and do everything to ensure my clients close on time and with the best rate possible.