VA Home Loan Eligibility Requirements And Guidelines On Home Purchases

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VA Home Loan Eligibility Requirements And Guidelines On Home Purchases

This BLOG On VA Home Loan Eligibility Requirements And Guidelines On Home Purchases Was Written By Gustan Cho NMLS 873293

VA Home Loans are the best mortgage loan program in the United States.

  • The United States Department Of Veteran Affairs (VA) is the government agency that is in charge of the VA Loan Program
  • Department of Veterans Affairs sets VA Home Loan Eligibility Requirements
  • Only active duty, reservist,  and retired veterans and members of National Guard that meet VA Home Loan Eligibility Requirements set forth by the U.S. Department Of Veterans Affairs are eligible
  • The Department of Veterans Affairs allows spouses of active duty members of our military who passed due to service connected disability to be eligible for VA Loans

General VA Home Loan Eligibility Requirements

The Department Of Veterans Affairs sets the VA Home Loan Eligibility Requirements for borrowers to qualify for VA Mortgages.

VA borrowers needs to meet one of the following VA Home Loan Eligibility Requirements in order to qualify for VA Loans:

  • The veteran borrower needs to have served 90 consecutive days of active military service during wartime
  • Need to have had military service of at least 181 days of active duty military service during peacetime
  • Veterans needs to have served for at least six years of service in Reserves and/or National Guard
  • Spouse of veteran who has died while in active military service duty and/or as a result of a military service related disability

Obtaining Certificate Of Eligibility

Only veterans with a Certificate Of Eligibility (COE) can qualify for VA Home Loans. Just because a soldier served in the United States Armed Services does not mean they automatically are issued a Certificate Of Eligibility. The VA COE is what validates the length and type of service of veterans and determines the validity of VA mortgage benefits.

Here is how veterans can apply for their Certificate Of Eligibility certificates:

  • Consult a lender who is approved with Department Of Veterans Administration and the loan officer will assist in getting COE
  • Applying directly through the Department Of Veteran Affairs eBenefits Website
  • Applying via USPS mail service with VA Form 26-1880

Most borrowers rely on their loan officers in obtaining VA Certificate Of Eligibility.

VA Guidelines On Debt To Income Ratio

The Department Of Veteran Affairs does not have any debt to income ratio requirements.

  • Why is it that most lenders cap VA Loan DTI at 45% to 50%?
  • VA debt to income ratio requirements is not set by the VA
  • Each lender has their own debt to income ratio requirements
  • This is called lender overlays on debt to income ratios by other VA Lenders
  • Gustan Cho Associates Mortgage Group at Loan Cabin Inc. are national direct lenders with no overlays on VA Loans
  • GCA Mortgage Group has no debt to income ratio requirements on VA Loans while most other lenders do
  • As long as borrowers can get an approve/eligible per Automated Underwriting System, GCA Mortgage Group will get a VA Home Loan Approval and borrowers will close on their VA Loans on time.

To get a VA AUS Approval, it is best recommended that borrowers have at least a 580 credit score and no late payments in past 12 months.

Automated Underwriting System Findings On VA Loans

AUS will recognize and analyze the following:

  • Residual Income
    • Income left over each month after paying all debts and expenses
  • Borrowers Credit Scores
  • Overall payment history
  • Outstanding collections and charged off accounts
  • Longevity of credit tradelines
  • Payment history in past 12 months
  • Stability and reliability of borrowers income
  • Debts

VA Home Loan Eligibility Requirements Versus Lender Overlays

All VA Lenders needs to meet the minimum VA Home Loan Eligibility Requirements And Guidelines set forth by the United States Department Of Veterans Affairs.

  • However, most lenders have additional VA Guidelines that is above and beyond those of VA
  • These additional guidelines are called VA lender overlays
  • GCA Mortgage Group is proud to be one of a few national VA Lenders with no lender overlays
  • GCA Mortgage Group has no minimum credit score or debt to income ratio requirements
  • As long as borrowers gets an approve/eligible per Automated Underwriting System (AUS), borrowers can be rest assured they will close on their VA Loans
  • We normally close all of our loans in 30 days or less from the acknowledgement of the Loan Estimate and real estate purchase contract

Qualifying For VA Home Loans With Direct Lenders With No Overlays

Gustan Cho Associates Mortgage Group at Loan Cabin Inc. are direct lenders with no lender overlays on VA Home Loans. We just go off Automated Underwriting Findings without any additional lending requirements like most other lenders have. GCA Mortgage Group closes 100% of all our pre-approvals because all of our pre-approvals are fully underwritten and signed off by our mortgage underwriters. What this means is that all of our pre-approvals are loan commitments to lend. To start the mortgage approval process, please contact us at GCA Mortgage Group at 262-716-8151 or text us for faster response. We are available 7 days a week, evenings, weekends, and holidays. We close all our VA Home Loans in 30 days or less. A substantial of our VA Loans are manual underwrites.

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