What to Expect From A VA Mortgage
Veterans Affairs provides mortgage home loans for all military personnel who have fulfilled the initial qualifications for the mortgage loans. Private lenders can provide VA mortgages if an applicant qualifies through their service record. Reviewing what to expect from a VA mortgage helps the borrower evaluate all requirements and increase their chances of approval.
Who Can Get a VA Mortgage?
Veteran Affairs home mortgage loans are available to military personnel, veterans, and a surviving spouse. The military personnel must have at least 90 days of active wartime service, 181 active peacetime service days, 6 years in the National Guard, 6 years in the Reservices. Any spouse applying for a VA home mortgage must have been married to the military personnel when they died, and the service member must die due to a service-related disability or injuries while doing their duties. Surviving spouses do not qualify for a VA mortgage if their service member died under any other circumstances.
What Information is required for Applying for a VA Loan?
A certificate of eligibility is helpful for verifying that the service member has met the basic requirements for the VA home mortgage program. All applicants must present income statements, bank statements, savings statements, and consent to a credit assessment.
Even if the service member meets eligibility for participating in the VA mortgage program, it doesn’t guarantee that they will be approved for a mortgage loan. The borrower has to have a credit score of at least 660. An income-to-debt ratio is established for the borrower to determine if the service member has enough income left after paying their monthly obligations to afford the new mortgage loan, property taxes, and homeowner’s insurance premiums. Veterans Affairs prefers service members to have enough income to cover the payments and generate a savings account through residual income for potential financial emergencies. Income requirements for the mortgages are strict, and service members must fulfill the requirements to get a mortgage home loan.
What are the Requirements for the Property?
VA lenders require the property to meet stricter criteria than any other mortgage home loan programs. An appraisal and inspection are required by the lender. To qualify for the VA requirements, the property cannot have any existing problems. It is more difficult for existing properties to qualify for a VA loan than a recently built home or new construction. The age of the property is a factor that is assessed when qualifying the property for the VA mortgage program. The VA inspector must approve the property before the loan or the real estate transaction proceeds.
The buyer must choose a newer property in most cases to get approval for the property. A new construction presents a faster approval since the inspections for the property are completed at several phases of the construction, and the property won’t have any existing issues when it’s financed.
Military families can acquire a home mortgage loan if they qualify for the VA mortgage program. The program allows military personnel to get a mortgage and avoid a down payment. Military personnel that wants to apply for a VA loan can review Dustin Dimisa’s Facebook for contact information now.