Who Qualifies for A VA Loan?

In order to become qualified for a VA loan, one must meet many requirements first. If you are unsure of these requirements, then you need to contact a specialist for VA Loans or your mortgage broker, as completing a Certificate of Eligibility is one of the first things that needs to be done in this process.

A VA Loan can be used to purchase, build, or improve a residence. These include houses, condominiums, or a townhouse. A VA loan can also be used to refinance a home loan.

When compared to a standard loan, a VA loan has many benefits.

For one, VA Loans can sometimes be awarded to individuals who would not normally qualify for a standard loan. Also, VA Loans to not require down payments in most cases, though it ultimately depends on who is backing the loan. These loans come with interest rates that are lower than standard loans, and if the rate is too high, you have the opportunity to negotiate it before signing. Finally, this loan does not come with premium insurance fees, and there are no closing costs or penalties for paying the amount off early.

VA Home Loan Criteria

If you fall into one of these categories, you may be eligible for a VA loan:

  • Active-duty personnel and Peacetime Veterans having at least 180 days of continuous service.
  • Active-duty Veterans that left service during World War II or later due to any reason other than dishonorable.
  • Veterans that were enlisted after 1980, or officers with service beginning after 1981, that had at least two years of service.
  • Veterans on active-duty that have no less than ninety days of continuous service that occurred during a major conflict
  • Members of the selected Reserve and National Guard could also be eligible, and should check with someone who specializes in VA loans to determine their individual qualifications.

There is no limit set by the VA that would say how much you can borrow; instead, the lender does. The basic loan is for $36,000, though some loans may reach up to $60,000. In most cases, without needing a down payment, up to four times the amount of the basic entitlement can be loaned. Keep in mind that many financial institutions and lenders won’t loan much more than $417,000, as this is the limit in a secondary market, which is where loans this high are usually used.

For those who already have a loan through the VA, there is still entitlement renaming that they may qualify for if they have an unused balance. Individuals with alternate loans through the VA are now eligible for higher amounts of money, since entitlement amounts may have increased over time.

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