VA Home Loan Requirements 2023 - Gustan Cho Associates

Gustan Cho Associates has prepared this comprehensive guide about VA home loan requirements for our potential clients and viewers. In this guide on VA home loan requirements, we will discuss and cover every aspect of VA home loan requirements for first-time homebuyers, borrowers with bad credit, borrowers with high debt-to-income ratio, home buyers with a prior bankruptcy and foreclosure, homebuyers with late payments, and dozens of other case scenarios.

VA loans has no down payment requirements, no maximum loan limit, no minimum credit score requirement, and no mortgage insurance.

You will not find a more comprehensive guide about VA home loan requirements other than the one we have prepared. We will also share our clients’ most frequently asked questions about VA home loan requirements and the steps in getting approved for VA loans with bad credit. In the following paragraphs, we will cover the VA loan requirements for active and retired members of the U.S. Military with a Certificate of Eligibility.

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What Are VA Loans?

U.S. President Franklin Delano Roosevelt endorsed and signed the Servicemen Readjustment Act in 1944. The Servicemen Readjustment Act is also known as the GI Bill of Rights. In 1944, The GI Bill of Rights’ purpose was to help United States veterans and their family members by promoting the dream of homeownership a reality. The veterans and their families can realize the reality of homeownership through VA loans, federally guaranteed home loans with no down payment required as long as the veteran meets the VA lending guidelines.

What Are The Minimum VA Home Loan Requirements

One of the greatest rewards our government gives our military veterans is that they offer VA Loans to a member who meets VA Home Loans. The U.S. Department of Veteran Affairs has offered VA Home Loans with 100% financing to our veterans for decades.

VA loans are the best loan program available in this country today.

Only veterans with a COE can qualify for this great loan program. The Department of Veteran Affairs determines the VA Home Loans on who qualifies for VA Loans. Several factors determine the VA’s issuance of a valid Certificate of Eligibility. Factors such as whether or not the veteran served in war or peacetime and the years of service are considered for eligibility purposes.

What Are The Requirements To Get a VA Loan

Thank you, veterans, for your service. We are grateful for all you do to keep us safe. Let us help you to secure a VA loan for your home purchase. We have no lender overlays and lenient requirements on VA loans. VA loans are not for everyone. The U.S. government created and launched VA loans to thank the members of our society for their service to our country during peacetime and wartime. VA loans have the most lenient guidelines than any other mortgage loan program. We will keep updating this VA loan eligibility requirements guide as changes occur.

Who Makes The VA Home Loan Requirements?

One frequently asked question is who makes the VA home loan requirements. Great question. The Veterans Administration and the individual mortgage lender. The Department of Veterans Affairs is the government agency that administers VA home loan requirements and sets the guidelines for eligibility for active duty, retired veterans, and spouses of deceased eligible members. It is very beneficial for veterans using their VA eligibility to read this guide for the first time thoroughly.

VA Home Loan Requirements During Service Periods

Eligibility for qualifying for a VA loan during wartime periods of services is listed below:

Vietnam era: Wartime period between 08/05/1964 through 05/07/1975
Persian Gulf, Afghanistan, and Iraq periods of service between 08/02/1990 to present
Veteran Administration eligibility requires that the candidate must complete 90 days or more on active duty service

How Do I Know If I Am Eligible For A VA Loan?

VA Home Loan Requirements For Eligibility During Peacetime Periods Of Services:

Period of peacetime services between 05/08.1975 to 08/01/1990
The veteran must have completed at least 181 days of continuous active duty military service.
Military reserve members and members of the National Guard must have completed at least six years as members of the Selected Reserves.
Spouses of a prisoner of war or missing-in-action veteran is eligible as long as they have been a prisoner of war or missing in action for at least 90 days.

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What Is The Lowest Credit Score I Can Have To Buy a House With a VA Loan?

The individual mortgage lender can have their own VA home loan requirements called lender overlays. If you get denied for a VA loan, you need to find out whether it was due to you not meeting the agency guidelines or due to the lender overlays. We will outline and cover all of the VA home loan requirements so you know if you get denied by a lender, you will realize whether you got denied due to not meeting the VA agency guidelines or due to lender overlays.

VA Loan Eligibility Requirements

Gustan Cho Associates has no lender overlays on VA mortgage loans. Lender overlays are additional mortgage lending requirements that exceed the agency mortgage guidelines of the VA. Gustan Cho Associates will go off the minimum VA loan guidelines without lender overlays. The following are the key bullet points homebuyers should keep in mind. Not all VA lenders are the same.

VA home loans are government-backed loans. Each lender has its own VA home loan requirements that can be higher lending guidelines than the minimum agency guidelines.

These higher lending guidelines by individual private lenders are called lender overlays. Therefore, if you do not qualify for a VA loan with one lender, you can qualify and get approved with a different lender with no lender overlays on VA loans. Veterans need to understand the minimum VA agency guidelines of the Veterans Administration.

What Are The Minimum VA Agency Guidelines from the Veterans Administration

We have outlined the main VA agency mortgage guidelines from the Veterans Administration for veterans to keep in mind when they are applying for a VA home loan. Remember, if you meet the following VA Home Loans below, you will qualify for a VA home loan with a mortgage lender with no lender overlays. VA loans are available for eligible homebuyers with a certificate of eligibility.

What Credit Score Do I Need To Qualify For a VA Loan?

VA loans have no minimum credit score requirements with an approve/eligible per the automated underwriting system (AUS). Homebuyers can qualify for VA loans with credit scores down to 500 FICO with an approve/eligible per AUS or manual underwriting.

The key to getting an automated underwriting system findings approval is to have been timely on all your monthly payments in the past 12 months. Homebuyers who cannot get an approve/eligible but get a refer/eligible per automated underwriting system (AUS) are eligible for manual underwriting. Manual underwriting guidelines apply.

What Is Manual Underwriting on VA Home Loans?

VA and FHA loans are the only two government-backed loans allowing manual underwriting. Manual underwriting is when the borrower cannot get an approve/eligible per automated underwriting system (AUS) and gets a refer/eligible findings. A human mortgage underwriter manually underwrites a VA loan on a manual underwrite.

To be eligible for manual underwriting, you must have been timely on all your monthly payments for the past 24 months.

The only difference between manual and automated underwriting is the debt-to-income ratio is capped on manual underwriting. Mortgage underwriters have a lot of underwriter discretion on manual underwrites. Gustan Cho Associates have closed manual underwriting files with debt-to-income ratios as high as 64% DTI with strong compensating factors. Gustan Cho Associates can accept timely payments for the past 12 months for manual underwriting.

Can I Get Approved For VA Loans With Collection Accounts?

Veterans can qualify for VA home loans with collections, charged-off accounts, and derogatory credit as long as they have been timely in the past 12 months on all of their monthly debt payments. Unpaid collections and charge-off accounts do not have to be paid on VA loans. As long as the date of last activity on collections and charge-off accounts is older than 12 months, you will be eligible to qualify for VA loans.

There is no maximum debt-to-income ratio cap on VA loans if you get automated approval. It is not uncommon for our typical client to have a 65% AUS approval. The key to getting an AUS approval with high debt to income ratio, the borrower needs to meet the residual income test.

VA does not mandate a maximum debt to income ratio with an approve/eligible per automated underwriting system (AUS).

Veterans can get an approve/eligible with credit scores down to 500 FICO and a debt-to-income ratio over 60% DTI if they have strong residual income. Most lenders will tell you a front-end and back-end debt-to-income ratio requirement. Most of the caps I have seen are at 31% front-end and 43% back-end DTI. Gustan Cho Associates has no lender overlays VA loans with credit, DTI, FICO, or derogatory tradelines.

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Two years of employment history but gaps in employment allowed. There is no maximum loan limit on VA loans. Primary residentially zoned one to four-unit properties is eligible for VA home loans.

What Are The Steps To Applying For a VA Home Loan?

The first step of qualifying and getting pre-approval on a VA loan is to get a certificate of eligibility (COE). To receive this certificate, the borrower must file VA Form 26-1880, Request for Determination of Eligibility and Available Loan Guaranty Entitlement. Spouses of Veterans and service members who have died while on duty in the service or have died because of a disability due to the result of serving in the armed services may also be eligible by the Department of Veteran Affairs. You then have to choose a lender.

How Can You Receive a Certificate of Eligibility From the Veterans Administration?

To receive a certificate of eligibility from the United States Department of Veteran Affairs, the VA Loan borrower must have filed a VA Form 26-1880 for Determination of Eligibility and Available Loan Guaranty Entitlement. First, a borrower must have a certificate of eligibility from the VA to obtain a loan.

Gustan Cho Associates has a reputation for helping borrowers who could not qualify at other lenders. We say YES when other lenders say NO on VA loans.

The team at Gustan Cho Associates can help borrowers obtain the COE and help you start the homebuying and mortgage process. Gustan Cho Associates are experts on VA loans. Not all mortgage lenders have the same lending requirements on VA loans. In the paragraph below, we will explain why one lender has a higher lending requirement than another. Gustan Cho Associates has a national reputation for being able to approve VA loans with bad credit when others can’t.

VA Home Loans For Active Duty Military Personnel

Veterans who served on active duty in the following branches of the U.S. Military with a military discharge other than dishonorable discharge are eligible for VA loans:

U.S. Army
U.S. Air Force
U.S. Navy,
The United States Marine Corps
United States Coast Guard

Soldiers currently in the military and on active duty are eligible to qualify for VA Loans if they have served for at least 90 or more days without any gaps in employment. For veterans who did not have wartime service during the Persian Gulf Era, at least 181 days of active duty service is necessary to qualify for VA loans.

The Following Are The Time of Service VA Home Loans

Here are the VA Eligibility Requirements:

Served 90 or more days during wartime
The veteran has served at least 181 or more continuous days during peacetime

VA Home Loans on Two-Year Rule

In this section, we will cover VA Home Loans on the TWO-YEAR RULE: If the veteran has enlisted or began military service after 7 September 1980 or was an officer of the U.S. Military and started serving our country on 16 October 1981. Then, the following conditions need to be met: The veteran must have served at least 24 months or more, or the veteran’s service serving on active duty cannot be less than 90 continuous days during wartime or less than 181 continuous days during peacetime.

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Serving During Wartime Versus Peacetime

The Department of Veteran Affairs differentiates service during wartime and peacetime when determining the VA Certificate of Eligibility issuance. VA Home Loans on service during wartime versus peacetime are as follows:

During World War II

Wartime is from September 16, 1940, through July 25, 1947, and during peacetime from July 26, 1947, to June 26, 1950.

During the Korean War Period

The wartime timeline is from June 27, 1950, to January 31, 1955. Peacetime is from February 1, 1955, to August 4, 1964.

Vietnam War Period

The wartime service period is from August 5, 1964, until May 7, 1975. Vietnam War Era Peacetime service is from May 8, 1975, until August 1, 1990.

Persian Gulf War Conflict Period

The wartime service period is considered from August 2, 1990, until ++++( Not determined yet ).

Can I Get a VA Loan With Bad Credit?

Eligible veterans with a certificate of eligibility (COE) can qualify for a VA home loan with bad credit. You do not have to pay outstanding collection account balances to qualify for a VA loan. VA only cares that you have been timely on your payments for the past 12 months. Eligible retired or active members and eligible surviving spouses of veterans of the U.S. Armed Services can qualify for VA loan programs at Gustan Cho Associates with zero lender overlays.

What Are The Minimum Requirements For a VA Home Loan?

Not all lenders have the same lending requirements on VA loans due to lender overlays. Gustan Cho Associates has zero lender overlays on VA loans. Over 75% of our clients could not qualify at other lenders due to overlays, last-minute mortgage denial, or stress during the mortgage process. Most borrowers get qualified and close at Gustan Cho Associates with zero stress.

Best VA Lenders With No Overlays

Gustan Cho Associates are mortgage brokers licensed in 48 states, including Washington DC and Puerto Rico (Not licensed yet in MA and NY). As with other government loan programs like FHA and USDA, there are mortgage lending guidelines with VA loans concerning minimum credit score requirements and debt-to-income ratio requirements. We are a no overlay VA mortgage lender. As long as you get an approve/eligible per the Automated Underwriting System, you will close on your VA loan.

Who Qualifies For a VA Loan?

Not all members of the U.S. Military can qualify for a VA loan. You need a certificate of eligibility (COE) to be eligible for VA loans. Active or retired members of the U.S. Military with a certificate of eligibility (COE) will qualify for a VA loan.

How Do Veterans Become Eligible For VA Loans

In this section, we will cover the eligibility guidelines for VA loans. The veteran must have served 181 days of active service during peacetime. Veterans must have served 90 consecutive days of active service during wartime. Or, the veteran must serve more than six years of service with the National Guard or Reserves or served at least 90 days under Title 32, with at least 30 consecutive days. Just because you have served does not automatically entitle you to VA home loan benefits.

How Hard Is It To Get a VA Loan?

One of the frequently asked questions at Gustan Cho Associates is how hard is it to get a VA loan? For borrowers who are eligible and have VA entitlement, the process of getting a VA home loan is very simple.

Eligible borrowers do not have to come up with any down payment, no minimum credit score requirements, and no maximum debt-to-income ratio caps.

There is no maximum loan limit on VA loans. Another great benefit on VA mortgage loans is there is no mortgage insurance required. The team at Gustan Cho Associates is available 7 days a week, late evenings, on weekends, and on holidays. Licensed in most of the 50 states. Over 75% of our borrowers could not qualify at other lenders due to lender overlays, stress during the mortgage process, or last-minute loan denial. Competitive rates: We have lending partnerships with over 170 wholesale lenders. No lender overlays. Expertise in being able to do VA loans other lenders cannot do.
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Most mortgage lenders have their own VA home loan requirements, or overlays, they create and require. VA home loans are marketed, originated, and funded by private mortgage lenders who have their own lender overlays. What this means is they have their own credit score, debt-to-income ratio, and other credit/income lender overlays they require. There are lenders like Gustan Cho Associates with no lender overlays. We have a business model where we have wholesale lenders who just go off VA agency mortgage guidelines and has zero overlays on VA loans.

Can You Get Approved For a VA Loan After Being Denied?

There are many cases where some borrowers get approved for a VA home loan with a particular lender while others get denied even though they meet the minimum VA home loan requirements of the VA. Many people who are eligible for a VA home loan and meet all of the VA home loan requirements get denied by many lenders who have lender overlays. This is often the case when the borrower has low credit scores, prior bad credit, collections, charged-off accounts, high DTI, and other credit/income issues.

How Can I Find a Lender To Approve Me on a VA Loan After Being Denied?

Many veterans assume all VA home loan requirements are the same among mortgage lenders on VA loans. However, this is not true. There are two different types of mortgage guidelines on VA loans. The first and foremost, all mortgage lenders need to make sure their borrowers meet the minimum VA agency guidelines of the U.S. Veterans Administration (the VA). The second type of guidelines on VA loans are the internal individual VA home loan requirements by the lender called lender overlays.

Over 80% of our clients at Gustan Cho Associates are borrowers who could not qualify at other lenders. There are no minimum credit score requirements. Scores down to 500 FICO. There are no maximum debt-to-income ratio caps with an AUS approval. Debt-to-income ratio of 65% approved per AUS. Gustan Cho Associates are experts in Manual Underwriting of VA loans. There is no down payment requirement on a home purchase. 100% financing on owner-occupant one to four-unit homes. There is no mortgage insurance premium required. There is no maximum loan limit on VA loans.
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Mortgage lenders can have lenders overlays on VA home loans. Lender overlays are lending requirements that are higher than the minimum agency VA guidelines. Make sure you do your research on the mortgage lender’s minimum VA Home Loans. At Gustan Cho Associates, we have no lender overlays. We just go by the VA agency guidelines. Most of our VA home loans close in 30 days or less.More on What Should I Look For in a VA Lender

Best Mortgage Lenders For VA Loans After Being Denied

Over 75% of our borrowers are folks who could not qualify at other lenders due to last-minute loan denial, stress during the mortgage process, and not being able to get a hold of their loan officers. We have a national reputation for being able to do loans other lenders cannot do. Gustan Cho Associates is referred to as a One-Stop Mortgage Shop due to having a network of over 190 wholesale mortgage lenders. The team at Gustan Cho Associates strives to get the best of the best service, loan program, rates, and net tangible benefits for our borrowers. We are grateful to our clients and preferred realtor partners for our expanding growth and success. Thank you for your confidence, faith, and trust in Gustan Cho Associates in having us as your mortgage professional for life. The team at Gustan Cho Associates will not let you down.

Can I Qualify For a VA Loan After Bankruptcy?

Yes, you can qualify for a VA loan after bankruptcy. There are two types of bankruptcy: Chapter 7 and Chapter 13 Bankruptcy. The VA guidelines after Chapter 7 bankruptcy are different from Chapter 13 Bankruptcy. Chapter 7 Bankruptcy is very straightforward, where the borrower needs to wait the mandatory two years after the discharge date. You can qualify for a VA loan during and after Chapter 13 Bankruptcy. We will cover and discuss this topic in more detail. We will cover both types of VA home loan requirements after bankruptcy. Borrowers cannot have late payments during or after bankruptcy.

VA Home Loan Requirements After Chapter 7 Bankruptcy

Homebuyers can qualify for a VA loan after Chapter 7 Bankruptcy after a two-year waiting period. The waiting period is two years from the discharge date. You need to have rebuilt and re-established credit after the discharge date. No late payments after the discharge date. The bankruptcy does not affect your mortgage rates on your VA loan. Mortgage rates on VA loans are mainly based on credit scores. This is why it is very important to start rebuilding your credit when you get discharged from Chapter 7 Bankruptcy.

VA Loan Guidelines During Chapter 13 Bankruptcy

Homebuyers can qualify for VA loans during the Chapter 13 Bankruptcy repayment period one year after being in the plan. The Chapter 13 Bankruptcy does not need to be discharged to be eligible for a VA loan. You need to have made twelve timely payments to your Chapter 13 debts. The bankruptcy trustee needs to approve the mortgage. It needs to be a manual underwrite. Gustan Cho Associates are experts in helping veterans get approved and close on VA loans during the Chapter 13 Bankruptcy repayment plan.

VA Home Loan Requirements After Chapter 13 Bankruptcy

No waiting period is required after the Chapter 13 Bankruptcy discharge date to qualify for VA home loans. If the discharge date of the Chapter 13 Bankruptcy is not at least two years old, the file needs to be a manual underwrite. We will cover manual underwriting guidelines on VA loans later in this guide. Verification of rent is required on manual underwrites.

Difference Between Automated and Manual Underwriting on VA Loans

The only difference between manual and automated underwriting system (AUS) findings approval files is the debt-to-income ratio on manual underwriting is limited. The front-end and back-end debt-to-income ratio on manual underwriting is based on the number of compensating factors the borrower has.

Manual Underwriting Guidelines on VA Loans

VA and FHA loans are the only two mortgage loan programs that allow manual underwriting. Manual underwriting is when a human mortgage underwriter scrutinizes the file more carefully than AUS-approved files. The debt-to-income ratio on manual underwriting depends on the number of compensating factors. The front-end DTI is 31%, and the back-end debt-to-income ratio is 43% with zero compensating factor. With one compensating factor, the front-end DTI is 37%, and the back-end DTI is 47%. With two compensating factors, the front-end DTI is 40%, and the back-end DTI is 50%.

Do All Mortgage Lenders Have The Same Rates on VA Loans?

No. Not all mortgage lenders have the same mortgage rates on VA loans. It is wise to shop for the best rates and terms on VA loans with several lenders and compare the rates, terms, and closing costs. Eligible retired or active members and eligible surviving spouses of veterans of the U.S. Armed Services can qualify for VA loan programs at Gustan Cho Associates with zero lender overlays. The United States Department of Veteran Affairs, the VA, backs residential owner-occupant home purchase mortgage loans through private lenders.

What Type of Property Can I Buy With a VA Home Loan?

Eligible members can purchase a one to four-unit single-family home. There is no maximum loan limit on VA loans. As long as the property purchase price is appraised and the borrower meets the VA loan guidelines, the borrower can purchase any property without concerns about VA loan limit caps. However, not everyone qualifies for VA mortgages. Only United States Armed Forces members with a valid Certificate of Eligibility (COE) are eligible for VA home loans. United States Armed Services members need to meet the eligibility VA loan guidelines and have been awarded a Certificate of Eligibility to qualify for a VA loan.

How Much Money Do I Need To Buy a House With a VA Loan?

An eligible homebuyer can qualify for a VA loan with zero down payment. VA loan-approved financial institutions offer 100% financing. There is no annual homeowners insurance premium on VA loans. Veterans who qualify for VA loans can purchase a home with no money down. Lenders will finance qualified borrowers 100% financing at competitive rates.

To qualify for a VA loan, the home buyer needs to have been honorably discharged from a division of the United States Armed Services and have a certificate of eligibility.

One of the most frequently asked questions from first-time homebuyers who are using their VA loans for the first time is how long does VA loan approval take. Remember not all VA lenders have the same VA Home Loans. All mortgage lenders need to meet the minimum agency VA home loans.

What Is a Good Credit Score To Buy a House With a VA Loan?

There is no minimum credit score requirements to qualify for a VA loan per VA agency guidelines. However, it is highly recommended to boost and/or maximize your credit scores as high as possible. High credit scores mean lower rates on VA loans. The borrower’s credit scores is the biggest determinant on VA loans. Gustan Cho Associates have closed VA loans with credit scores down to 500 FICO.

How Much Is The VA Funding Fee?

In general, most veteran borrowers pay 2.3% VA funding fee. However, the VA funding fee varies between 0.5% to 3.6% of the VA loan amount, depending whether the borrower have used their VA entitlement before on a prior VA loan and/or if they are paying more than a 5% down payment on their home purchase.

Use Our VA DTI Mortgage Calculator With VA Funding Fee Calculations.

VA loans have a one time VA funding fee on all VA loans similar to the FHA one-time upfront mortgage insurance premium. The VA funding fee goes to the Department of Veterans Affairs (The VA) to support and fund VA loans. The VA funding fee depends on the individual veteran and their entitlement. 100% disabled veterans are exempt from paying the VA funding.
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VA Manual Underwriting Guidelines on VA Loans For 2023

Manual Underwriting is when the Automated Underwriting System does not render an AUS approve/eligible and is a refer/eligible finding. Refer/eligible means the borrower can be eligible but wants to have a human underwriter manually underwrite the loan. There is no difference between AUS versus Manual Underwriting except for a restriction on the debt-to-income ratio.

Mortgage Rates on VA Loans on Manual Underwriting

Not all lenders will do manual underwriting. Gustan Cho Associates are experts on manual underwrites on VA mortgage loans for those who cannot get automated approval. There are instances where an approve/eligible per automated underwriting system approved VA loan can get downgraded to a manual underwrite.

VA home loans have one of the lowest mortgage rates of any other mortgage loan program.

Zero down payment and no mortgage insurance premium are two of the greatest benefits why veterans should take advantage of VA loans if they have a Certificate of Eligibility. There are no minimum credit score requirements on VA home loans. The automated underwriting system determines the debt-to-income ratio.

Can I Buy a House With a VA Loan With Poor Credit?

Mortgage loans guaranteed by the Veterans Administration are originated and funded by private mortgage lenders such as banks and mortgage companies that originate and fund owner-occupant home loans. VA mortgage loans are a great program for veterans serving in the U.S. Army, U.S. Navy, U.S. Air Force, United States Marine Corps, and United States Coast Guard. Each branch of service has its own eligibility benefits and is determined by the type of service, the longevity of service, and the character of the service. The VA has created lenient guidelines.

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How Do I Get Pre-Approved For a VA Loan?

Here are the basic VA agency mortgage guidelines:

There are no minimum credit score requirements on VA mortgage loan programs
There are no maximum debt-to-income ratio caps as long as the borrower gets an approve/eligible per automated underwriting system (AUS)
There is no down payment requirement on a home purchase
100% financing on owner-occupant one to four-unit homes
There is no mortgage insurance premium required on VA loans
There is no maximum loan limit on VA mortgages

For more information about VA loan mortgage loans, please get in touch with us at Gustan Cho Associates at 800-900-8569 or text us for a faster response. Or email us at gcho@gustancho.com. The team at Gustan Cho Associates is available seven days a week, on evenings, weekends, and holidays.

Other VA Home Loan Requirements For VA COE

Just because a soldier served in the U.S. Military does not mean they automatically qualify for a VA home loan. VA home loans with regards to being eligible for VA loans. Veterans discharged due to hardship or service-related disability can qualify for VA loans. Veterans who were discharged from the military for the convenience of the federal government can qualify if they have completed a minimum of 20 months of a 24-month enlistment agreement.

See If You Meet The VA Home Loan Requirements

The veteran must have served no less than 90 days during wartime and 181 continuous days during peacetime due to disability caused by serving in the armed services. Veterans discharged from active duty due to medical conditions, whether to connect or not connected with their service, can qualify for VA Loans. Veterans who received an involuntary discharge by any branch of the armed services from active duty due to the government’s discretion to reduce military personnel or due to the following:

mental
psychological
or physical condition that would interfere with their service can qualify for VA loans as long as their discharge was not related to improper conduct

Unmarried spouses of veterans who are deceased while on active duty or died due to service-related disabilities can qualify. Unmarried spouses of veterans who are missing in action or prisoners of war can qualify for VA loans.

VA Home Loan Requirements For Veterans of Selected Reserves

Members of the Selected Reserves are those who are compensated and paid for training and serving on the reserves. These members are on the Selected Reserve and are called when the government needs additional troops to safeguard our country.

How Many Years of Service in the Reserves is Required To Be Eligible for VA Loans

Members of the Selective Reserves who would not qualify for VA loans can qualify if they have completed six years of service in the Selective Reserves without being called to active duty if they meet the following conditions:

They have served and got an honorable discharge
If they were on the retired list
Were transferred to a division of the Ready Reserve or Standby Reserve
Is continuously serving in the Selective Reserve unit
The six years of service need not be continuous to qualify for VA loan programs or need not be in the same National Guard or Reserve division.
Cannot combine active and reserve service to meet the six-year rule

VA Home Loan Requirements Versus Other Loan Programs

VA Guidelines to qualify for VA Loans are the following:

No debt-to-income ratio requirements
No credit score requirements
2-year waiting period after Chapter 7 Bankruptcy
2-year waiting period after Short Sale, Deed-in-Lieu of Foreclosure,or Standard Foreclosure
Gustan Cho Associates has no lender overlays on VA loans

For veterans needing a lender with no VA lender overlay, contact us at Gustan Cho Associates at 800-900-8569 or text us for a faster response. Or email us at gcho@gustancho.com. The team at Gustan Cho Associates is available 7 days a week, on evenings, weekends, and holidays. The team at Gustan Cho Associates is available 7 days a week, on evenings, weekends, and holidays.

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VA Home Loan Requirements For 2023