Requirements For A VA Home Loan

Allowing Veterans to achieve homeownership, a VA home loan is a mortgage facility provided by VA-approved lenders. These loans are backed by the US Department of Veterans Affairs (VA) and offer some astounding benefits.

With no down payment options, no pre-penalty charges, no private mortgage insurance and lower interest rates, a VA home loan is easier to qualify and does not require an outstanding credit score to stand eligible.

ELIGIBILITY CRITERIA FOR VA LOANS

The VA offers several options like a purchase loan or refinancing loans.

While applying for a VA home loan, one of the most important steps is to obtain the Certificate of Eligibility (COE).

To apply for COE, you must pass any one of the following requirements-

• You are a Veteran or active duty member who has served at least 90 days during wartime or 181 days during peacetime.
• You are a member of the reserves or a national guard with at least six years of experience.
• You are a surviving spouse of a Veteran who either went MIA, was a POW or died while on service or from a service-related ailment.

DOCUMENTATIONS FOR COE

After assessing your eligibility for a VA home loan, you must apply for a COE.

You can apply for the certificate online or through the mail. You can even ask your private lender to get it for you.

Here’s a list of documents you will need to apply for the COE-

Veterans- DD Form 214

Active-Duty Members- Statement of service signed by your officer. The statement must include your full name, social security number, date of birth and any lost time.

Current Reservists/National Guards- Statement of service signed by your officer. The statement must include all the necessary information.

Retired National Guard- NGB Form 22, Record of Service, Report of Separation, NGB Form 23 and proof of the character of service.

Retired Reservist- A copy of your annual Retirement Points Statement and proof of honorable service and discharge.

Surviving Spouse who do not receive Dependency Benefits- Your spouse’s death certificate, your marriage license, VA Form 21P-534-ARE and DD Form 214.

Surviving Spouse who receive Dependency Benefits- VA form 26–1817

OTHER REQUIREMENTS

In addition to obtaining the COE, you must also pass the lender’s requirements to qualify for a VA home loan. You must have a minimum credit score of 620–640 and enough residual income.