VA Home Loan Eligibility Requirements On Home Purchases
This BLOG On VA Home Loan Eligibility Requirements 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
In this article, we will discuss and cover VA Home Loan Eligibility Requirements And Guidelines On Home Purchases.
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 need 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 need 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 the 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 its 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 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 the past 12 months.
Automated Underwriting System Findings On VA Loans
AUS will recognize and analyze the following:
- Residual Income
- The income left over each month after paying all debts and expenses
- Borrowers Credit Scores
- Overall payment history
- Outstanding collections and charged-off accounts
- The longevity of credit tradelines
- Payment history in the past 12 months
- Stability and reliability of borrowers income
VA Home Loan Eligibility Requirements Versus Lender Overlays
All VA Lenders need 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 are 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 get an approve/eligible per Automated Underwriting System (AUS), borrowers can rest assured they will close on their VA Loans
We normally close all of our loans in 30 days or less from the acknowledgment 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 is a national mortgage company 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 a faster response. Or email us at [email protected] 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.