VA Loans Alabama

VA Loans Alabama Mortgage Guidelines With No Lender Overlays

Gustan Cho Associates are mortgage brokers licensed in 48 states

This ARTICLE Is About VA Loans Alabama Mortgage Guidelines With No Lender Overlays

Alabama is on the map. The state borders one of the hottest states in the nation, Florida. Alabama is one of the top states residents from high-taxed states are migrating to. A large percentage of New Yorkers fleeing the state to lower-taxed states are those migrating to Alabama. Alabama is in second place in the most favorable states residents are migrating to.

The state of Alabama is right behind Tennessee in taxpayers and businesses moving from high-taxed states. Tennessee’s housing market is hot. It is slightly more popular than Alabama due to Tennessee being one of the 9 states where there are no state income taxes The state of Alabama also has a large veteran population. Alabama welcomes veterans and is home to thousands of active and retired members of the U.S. Military. In this article, we will cover and discuss VA Loans Alabama Mortgage Guidelines With No Lender Overlays.

VA Loans Alabama Mortgage Guidelines Versus Overlays

Many people are migrating to Alabama due to the following reasons:

  • Low cost of living and low property taxes
  • Affordable housing where they can get a lot of house for the money
  • Alabama has a healthy economy and no worries of consistent tax increases
  • Ample jobs and great opportunities to start a new business
  • Mild winters and great weather
  • Geography and countless places to visit
  • Large veteran population

The state is gaining residents and lowering sales and other taxes to attract new taxpayers.

Types Of Taxpayers Migrating To Alabama

A large percentage of residents are fleeing high-taxed states to Alabama. Many lower-taxed state residents are also moving to Alabama due to affordable housing. Florida and Texas are lower-taxed states where thousands of residents are moving there to call it home.

Many taxpayers from Florida and Texas are beginning to migrate to Alabama due to lower home prices. Property values in Texas and Florida have gone up double digits in the past five years. Veterans find it next to impossible to purchase a home in many states where home prices have been skyrocketing. Home prices in Alabama still remain low and are about 30% less than in Florida and Texas. Veterans with Certificate of Eligibility (COE) can get a lot of home for the money in Alabama.

Qualifying For A VA Loan From An Exiting State

Homebuyers who plan in relocating to Alabama can qualify for a VA Loan in a different state. Income will be key. Remote wage earners will not have any issues. Workers who are remote wage earners can qualify to purchase a home in any state in the U.S. Disabled veterans also will not have an issue qualifying for a VA Loan in a different state.

Gustan Cho Associates accepts offer letters of employment for those who have a job in a different state. Please contact us at 800-900-8569 or text us for faster response to discuss qualifying for a mortgage with a VA offer employment letter. Or email us at

Do All Lenders Have The Same Guidelines On VA Loans

VA Agency Guidelines.

Not all mortgage companies have the same VA Lending Requirements. Just because a borrower gets denied by one lender does not mean they cannot qualify with another lender. This holds true only if the borrower meets the basic VA Agency Guidelines.

All borrowers need to meet the minimum mortgage guidelines by the Department of Veterans Affairs. Most lenders have additional lending requirements that surpass guidelines by the VA. The additional guidelines are called overlays. Overlays are the reason why a borrower who meets the minimum guidelines on VA Loans does not qualify at some lenders. Lenders can impose overlays on just about everything.  Typical VA Lender Overlays are credit scores, debt to income ratios, and derogatory credit tradelines.

VA Agency Mortgage Guidelines

All borrowers who need to qualify for VA Loans need to meet the Department of Veterans Affairs minimum requirements. The Veterans Administration has one of the most lenient mortgage guidelines versus other loan programs. Qualified veterans are awarded the Certificate Of Eligibility as a token of appreciation for their service in serving our country.

The roles of the VA is to guarantee private lenders in the event the borrower defaults and forecloses on their VA Loan. Lenders are more than willing to offer qualified veterans with COE a VA Loan with 100% financing and at low rates due to the government guarantee.

Lending Requirements By The Veterans Administration

Below is the list of the minimum agency guidelines set forth by the U.S. Department of Veterans Affairs:

  • No down payment is required
  • The VA recently removed the maximum loan cap on VA Loans
  • The VA does not require a minimum credit score with an AUS Approval
  • The VA is the only loan program that does not have a maximum debt to income ratio cap with an AUS APPROVAL
  • Borrowers can qualify for a VA mortgage after Chapter 7 Bankruptcy, foreclosure, short-sale, deed in lieu of foreclosure with re-established credit
  • Borrowers can qualify for VA Loans during Chapter 13 Bankruptcy repayment plan without having Chapter 13 discharged with Trustee Approval
  • There is no mandatory waiting period requirement after the Chapter 13 Bankruptcy discharged date
  • Collections and charged-off accounts do not have to be paid

VA and FHA Loans allow manual underwriting.

Qualifying For A VA Loan With A Direct Lender With No Lender Overlays

Over 75% of our borrowers at Gustan Cho Associates are folks who could not qualify at other lenders due to their lender overlays. We have a five-star national reputation for being able to close VA loans other companies cannot. We have no lender overlays on VA Loans. Gustan Cho Associates just goes off the AUS FINDINGS and has zero overlays. To qualify with a mortgage lender with no overlays on government and conventional loans, please contact us at Gustan Cho Associates at 800-900-8569 or text us for a faster response. Or email us at

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