VA Guidelines On Home Purchases And Refinancing


This BLOG On  VA Guidelines On Home Purchases And Refinancing Was UPDATED And PUBLISHED February 6th, 2020

What are the VA Guidelines On Home Purchases And Refinancing

VA Guidelines require that the veteran borrower have a valid COE which is the Certificate of Eligibility from the United States Department of Veterans Affairs.

  • The Certificate of Eligibility is an official certificate from the Veteran Affairs
  • COE is the paperwork that validates Veterans are eligible to qualify for a VA Home Loan
  • It is the proof borrower is or has been a member of the United States Armed Services
  • In order to qualify for a VA Loan, borrowers need to have an honorable discharge from the U.S. Military
  • Just serving in the United States Armed Services does not automatically qualify for VA Loans
  • There are certain peacetime and/or wartime criteria and service requirements that need to be met and/or eligible spouses of the veteran that needs to meet to qualify

In this article, we will cover and discuss VA Guidelines On Home Purchases And Refinancing.

VA Guidelines Eligibility Requirements To Qualify

VA Home Loans are the best mortgage loan program in the United States. There are countless of Benefits Of VA Loans Versus Other Loan Programs which we will cover on this article on VA Guidelines.

Here are the eligibility requirements on VA Home Loans under VA Guidelines:

  • Veterans of the U.S. Military who has served the U.S.
  • Have met the minimum service requirements
  • Active members of the U.S. Armed Services
  • Need to have served the minimum service period qualify
  • Members of the National Guard as well as members of the Armed Services Reserves who meet the qualification requirements
  • Qualified surviving spouses of deceased veterans qualify
  • The above criteria are the basic eligibility requirements to qualify
  • Once meeting the above eligibility requirements, they now need to qualify for VA Loan with credit and income

Like any other loan program, the U.S. Department of Veteran Affairs and lenders require that the Veteran Borrower qualifies for under VA Guidelines.

VA Guidelines On Credit Scores And Debt To Income Ratio

What are the VA Guidelines On Credit Scores And Debt To Income Ratio

VA Guidelines are very lax:

  • The main reason borrowers qualify for FHA and cannot qualify for VA Loans is not because of VA Guidelines but because the lender the borrower consulted with has overlays on VA Loans
  • VA Loans are easier to qualify than any other loan programs
  • However, most lenders have a lot of overlays on VA Loans than they do on FHA or Conventional Loans
  • Gustan Cho Associates does not have any overlays on VA Loans
  • All borrower needs is an approve/eligible per automated underwriting system

No credit score nor debt to income ratio requirements.

Benefits With Qualifying With Direct Lender With No VA Overlays

Here are the VA Guidelines and VA mortgage qualification requirements of Gustan Cho Associates:

  • No minimum credit score requirements
  • As long as borrowers get an approve/eligible per Automated Underwriting System and can meet the automated approval conditions, we will close
  • VA does has Residual Income Requirement
  • There is no debt to income ratio requirements on VA Home Loans as long as you have sufficient Residual Income 
  • VA Home Loans do not require any down payment on a home purchase
  • VA allows up to 100% Loan To Value on a cash-out refinance
  • VA does have a one time VA Funding Fee
  • VA Funding Fee can be rolled into the Home Loan and/or can be paid with a sellers concession and/or lender credit
  • VA offers one of the lowest mortgage interest rates than any other loan program
  • It is often lower than conventional mortgage rates

VA does not require mortgage insurance premiums no matter what the loan to value.

VA Guidelines After Bankruptcy And Housing Event

What VA guidelines can be after a bankruptcy and housing incident

Veteran borrowers can qualify for VA Loan after 2 years of a Chapter 7 Bankruptcy discharged date

Veteran borrowers can qualify two years after a short sale:

  • FHA requires a three-year waiting period after a short sale to qualify for an FHA Loan

Veteran borrowers can qualify for VA Home Loans two years after the recorded date and/or sheriff’s sale date of a deed in lieu of foreclosure and/or foreclosure:

  • FHA requires a three year waiting period

VA exempts deferred student loans that have been deferred 12 or more months from debt to income ratio calculations:

  • Other loan programs will not exempt them

Closing Home Loans On Time Without Any Delays

Gustan Cho Associates closes most of their loans in 21 days or less and has no overlays on all of their government loans and Conventional Loans:

  • Gustan Cho Associates offers TBD FAST TRACK CREDIT/INCOME ONLY Underwriting
  • Borrowers get a conditional loan approval without a property

Once buyers get a property, all our underwriters need to do is underwrite the property and title and get a clear to close.

VA Guidelines On Bad Credit

Gustan Cho Associates is one of the most aggressive VA lenders in the country. We approve and close VA Loans where other lenders cannot due to their lender overlays on VA Home Loans.

Here are some facts on Gustan Cho Associates VA Home Loan Program:

  • Over 75% of our borrowers at Gustan Cho Associates are borrowers who either gotten a last-minute mortgage loan denial or are going through a stressful mortgage process
  • This is due to not being properly qualified by their current lender
  • Gustan Cho Associates Mortgage Group closes the majority of their loans in 21 days or less
  • Gustan Cho Associates is a five star nationally recognized National Lender with no overlays and licensed in multiple states
  • We properly qualify the borrower so we can close 100% of all of our pre-approvals and not just close the loan but close it on time

Military Veterans with any questions on VA Home Loans, contact us at 262-716-8151 or text us for faster response. Or email us at Gustan Cho Associates is available 7 days a week, evenings, weekends, and holidays to take your call, text, or email and answer any questions you may have.

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