• Veterans who had at least two years of continuous service on active duty service and a honorable discharge from a branch of the United States Military
  • Veterans  who had six years of continuous service in the Selected Reserves and/or National Guard Service with no less than a honorable discharge
  • Veterans with 90 days active-duty wartime service and no less than a honorable discharge from a branch of the United States Military
  • United States Veterans with at least a 181 days of continuous active-duty during peace times which the dates are below with no less than a honorable discharge
    • July 26, 1947 – June 26,- 1950
    • February 1, 1955 – August 4,- 1964
    • May 8, 1975- August 1, 1990
  • A person who is an unmarried surviving spouse of a United States Veteran who has died when the veteran was on active duty and/or as a consequence of military service associated illnesses and/or injuries.

Obtaining Certificate of Eligibility

One of the key things that is required to qualify for Veteran Administration Loans is a certificate of eligibility, or COE.

VA Loan to Value (LTV) Ratio and VA Downpayment Requirements

If you are a veteran, you can qualify for a no money down payment, 100% financing VA Loan.

  • There is funding fees on all VA Loans
  • Funding fees can be rolled into the balance of the VA Loan
  • There are no reserve requirements
  • Closing costs can be paid through a sellers concession or a lenders credit so no closing costs will be required with VA Loans

What are VA Loan Amount Limits

One great feature about VA Loans is that there is no maximum loan limits that a veteran may be eligible to borrow.

  • There are high balance VA Loans where if the property is located in a high cost areas, such as many parts in California
  • Most VA mortgage lenders do not want to lend a VA loan borrower no more than $453,100
  • Most VA loan limits in standard areas are capped at $453,100 for VA Loans

Veterans can purchase higher priced homes. VA will guarantee 100% up to $453,000.

  • Veterans can purchase higher homes and we can lend above the $453,100 VA Loan Limit
  • However, veterans need to put 25% down payment on any loan limit above the $453,100
  • For example, lets say home buyer wants to purchase a $653,100 home
  • VA will finance 100% up to the $453,100 but the buyer will need to put 25% of the difference of $653,100 minus the $453,100 or $200,000

With this case scenario, the buyer will need to put $50,000 down payment on the $653,100 home purchase.

Credit Score and Occupancy Requirements

VA does not have a minimum credit score requirements nor debt to income ratio caps.

  • Most VA Lenders will require a 620 to 640 credit score
  • The minimum credit score requirements is set by individual lenders and not the Department of Veterans Administration
  • Gustan Cho Associates Mortgage Group has no overlays on VA Home Loans
  • Our team recently closed on a VA Loan recently with 589 credit score and 60% debt to income ratios
  • As long as borrowers can get an approve/eligible per Automated Underwriting System, that is all we go by with no additional overlays
  • Most VA mortgage lenders want to see a credit score of 620 FICO or higher
  • All VA Loans are for owner occupied properties and not for second homes or investment home financing

To qualify for VA Home Loans with a national direct lender with no mortgage overlays, contact us at Gustan Cho Associates Mortgage Group at 262-716-8151 or text us for faster response. We are available 7 days a week, evenings, weekends, and holidays to take your mortgage questions.