VA Loans are provided as a benefit to current military and veterans in appreciation of their contributions to America.  VA Home Loans can be used by qualified veterans to buy or perform a home refinance in all 50 states.  VA Loans do not require a down payment or mortgage insurance and have great, low interest rates.

VA Loan underwriters use certain guidelines to determine that a veteran is qualifed and capable to afford their new housing expenses.  The Veteran's Credit History, Income and Debts, Military Service Length and Disposition and Property Qualifications are among the aspects that will be considered by the lender.

Service Length

In general, to qualify for a VA Home Loan, a veteran or current military service member must have completed one of the following conditions:

• More Than 181 Days of Peacetime Active Duty Service
• More Than 91 Days of Wartime Active Duty Service
• More Than 6 Years Service in the Reserves or National Guard

If you have completed any of the above or you are the widow of a military member that was killed during service, you are probably eligible for a VA Home Loan.  To confirm your eligibility, you must complete and submit a VA Form 26-880 along with your DD Form 214 discharge papers to your VA approved lender, who may be able to quickly obtain your Certificate of Eligibility electronically through the VA's Automated System of Eligibility system (ACE).  You may also submit this documentation directly to the VA Eligibility Center by mail at P.O. Box 20729, Winston-Salem, NC  27120.

Credit Guidelines

When you apply for a VA Loan, the lender will check your credit report to determine what your debts and credit scores are.  The VA Loan underwriter will carefully review the veteran's credit history, particularly the last 12 months, for late payments and credit worthiness.  There is no credit score minimum set by the VA to insure Veteran Affairs Loans, however, VA lenders usually have a minimum score requirement.  Currently, a 620 middle FICO score is a common minimum credit score for a VA loan approval.  If the applicant has a Bankruptcy in their past, they must have made all payments on time for one year.  If the veteran's Bankruptcy was Chapter 7, they can not apply for a VA Loan for two years from the discharge date.

Income Guidelines

VA Lenders currently use two methods when determining how much income is necessary to for a VA Loan approval.  The underwriter will look at all of the veteran's debts and the new housing expense to determine if the veteran's income is sufficient for approval.  The underwriter will also want to see that the sum of the total monthly payments for all debts and the new housing expenses do not exceed 41% of the veteran's total income.  The income source will also be reviewed to determine that is is stable, reliable and anticipated to continue.

Property and Occupancy Guidelines

VA Loans may be used to purchase, build or refinance an existing home or condominium that is approved by the VA.  To be eligible for a VA Loan, the veteran or their spouse must personally occupy the property as their primary residence.  The maximum VA Loan Limit for 100% financing varies from county to county throughout the United States.  In some areas, the limit is as high as $729,750.  The lowest maximum 100% VA Loan Limit anywhere in the U.S. is $417,000.

If you have additional questions about guidelines for VA Loans , please contact us This e-mail address is being protected from spambots. You need JavaScript enabled to view it .