Being a veteran gives you more than just the pride of serving and the gratitude of your fellow citizens. Veterans get a range of benefits from the federal government for serving. One of these benefits is the VA loan. If you want to purchase a home after you leave the service, this is a benefit you’ll want to take advantage of. VA loans are the cheapest mortgage type available today. This article covers all of the VA loan requirements and guidelines.
What is a VA Loan?
a VA loan is insured by the U.S. Department of Veterans Affairs (VA) and offered by many lenders across the country. The VA program was created to help Veterans become homeowners without a downpayment even if they have low credit scores. The VA does not offer the loan directly, they just insure the loan incase the loan is defaulted on. There are several great benefits of VA loans but the largest benefits are NO downpayment and no mortgage insurance. VA loans can be used to purchase, or refinance a home.
VA Mortgage Benefits
- No downpayment
- No mortgage insurance
- Low interest rates
- Higher DTI ratios accepted
- Low closing costs
- Easier to qualify for than traditional loans
VA Eligibility Guidelines
If you’ve served in the active military for at least six months, or in the reserves or National Guard for six years, or a spouse of someone who meets these conditions, you’ll likely qualify.
If you are approved, you’ll receive a document called a VA certificate of eligibility which will prove to lenders that you qualify for a VA loan.
However, you don’t need one on hand to start the process. Lenders can get this document from the government on your behalf during pre-approval.
Basic VA Service Requirements:
- Served for 90 consecutive days of active service in wartime, OR
- Served for 181 days of active service during peacetime,
- OR Has more than 6 years in the Reserves or Nations Guard
- Active-duty Servicepersons
- Servicepersons on active duty who have served for 90 consecutive days of active service are eligible
- Reservists and Members of the National Guard
Dishonorably discharged veterans are ineligible for any type of VA home loan.
Qualifying VA Income
- Salary/W-2 Income
- LES stipulated military income
- Part-time Income
- Second Job
- Bonus or Overtime Income
- Seasonal employment
- Self-employed Income
- Child support or Alimony (divorce decree and timely payments past 12 months
Non-Qualifying VA Income
- lottery winnings
- Gambling
- Unemployment payments
- One time bonuses
- One time payments from an employer
- non-occupying co-borrower income
- inconsistent income history
- Unverified income
- Rental Income
VA Loan Limits
In most parts of the country, veterans who qualify for military VA Loans can purchase a home worth up to $424,100 with no money down. However, with the 2017 VA Limits, high-cost counties such as Los Angeles and Denver have higher limits as high as $636,150. You can check VA loan limits in your county here.
source : thelendersnetwork.com
0 komentar