Who is Eligible for a VA home loan mortgage?
The Veterans Administration has established guidelines for who can qualify for the 100% VA loan home financing program. Eligible members tend to be active members of the military, Veterans, National Guard members, Reservists and surviving spouses. Not everyone will be qualified and the amount that qualifying members may receive can vary. A person wanting to utilize the loan should explore their eligibility and get the COE (certificate of eligibility) to see if they qualify. Lenders of VA loans should also be able to "pull" the certificate at the pre-qualification stage of home shopping.
You can visit the VA Administration to see if you are eligible to qualifying for the 100% VA home loan program.
- Although there is no set minimum credit score for getting a VA home loans you should have general goal of credit scores of 600 or higher. VA will allow for a "manual underwrite" which means that a automated underwrite found result of "not approved" and that result maybe overridden by a human reviewing the file. The VA loan tends to be more "understandable" on credit history and will likely require explanations of derogatory credit events.
- Work history should be at least 2 years but less than 2 years if there was schooling during the previous years for the general area of employment. Disability and benefits awards letters should be presented at time pre-qualification to help determine income.
- The VA will finance 100% of the purchase price of the home. So this is a true zero down home loan program/mortgage insured by the Federal Government.
- VA requires a home to be appraised by a VA approved appraiser. The appraiser is required to review the property and make sure it meets the VA standards of lending. This is not a home inspection but the property appraisal may point out issues with the property that may prevent it from qualifying for a VA loan.
VA Home Loans Allows For Seller Concessions - A seller concession is the allowable amount a seller can give in the new home purchase towards the buyer's closing cost. The VA loan may allow for up-to 6% of the sales price to be giving by the seller to the buyer in order to pay those costs.