(Newswire.net — March 12, 2020) — It comes as good news for service members and those that have served before, that they can get government-insured mortgages. This makes everything easy for them when it comes to home ownership. Since a VA home loan benefit is government-insured, lenders are more willing to give mortgages to service members. Among other benefits of the loan include leniency when it comes to credit scores and reasonable interest rates.
Even better is the fact that you can own more than one home using the VA loan, provided you have completed payment for the previous.
It is also important to note that you must be qualified to get the loan. Here are the eligibility requirements that you need to meet for a VA loan.
1. You have to meet specific service requirements
Most people do not know this, but it is important to note that eligibility is earned through service. To get a VA loan, you should be at least two years in regular service. National Guard members and reservists, on the other hand, are supposed to be active for at least six years. The other requirement is 90 days in duty during a war.
If you meet the above requirements, then you are a step closer to being approved for a VA loan mortgage.
2. VA loan certificate of eligibility
Your lender needs confirmation that the information you have provided regarding your service is accurate. That is why you need a Certificate of Eligibility. It ascertains the lender that the information you have provided about your time in service is accurate and that you qualify for a VA loan.
The good news is that you do not need to have it in hand for you to apply for a loan. Lenders are able to pull this information from the VA website.
3. Residual income requirements
Residual income is the amount of money you remain with after taking care of all major expenses. Residual income is used on transportation, emergencies, medical care, and food. Residual income information is used by lenders to assess your ability to take care of expenses and paying back the loan.
The residual income requirements for VA mortgages vary with family size. For a family of one, you are required to have a residual income of at least $450. The amount continues to increase as the family gets bigger. For instance, a family of four will require a residual income of $1, 025, to qualify for a VA mortgage. Also, geography is factored in minimum residual income requirements for a VA loan.
As earlier mentioned, lenders are lenient on credit scores if you are applying for a VA loan. This, however, does not mean that they do not look at it. Different lenders have different credit score requirements. The only thing is that they will be lower than those for conventional loans. If you meet the qualifications above and you have the right documents, nothing should stop your VA loan from being approved.