Buying a new home takes a lot of work. But, if you’re a veteran or in active military service, the process can become even more difficult, especially if you don’t qualify for a traditional mortgage. This is where a VA loan comes into play. This is a type of mortgage loan created by the United States Department of Veterans Affairs (VA) to help service members and their families obtain the funds needed to purchase a home.
Although the government generally supports VA loans, there are private lenders, such as Security America Mortgage, which provide VA loans to those in need. However, like conventional mortgages, VA loans are only available to certain qualified individuals.
So, if you’re considering taking out a VA loan, here’s how to find out if you’re eligible for this type of financial solution.
- Check qualification requirements
One of the best ways to find out if you are eligible to apply for a VA loan is to check the basic qualification requirements. Generally, you can qualify for the said loan if you are one of the following:
- In active service: If you actively serve in the military for a period of time, you may be eligible to apply for a VA loan. You must show that you have been on active duty in the Navy, Air Force, Army, or Marines for at least 90 consecutive days.
- Veteran: If you are a veteran, you can also qualify for a VA loan as long as you show a copy of your military service discharge papers.
- Reserve and National Guard: If you are a member of the Reserves or National Guard, you may also qualify to apply for a loan if you have completed at least six years of service and are no longer on active duty for specific reasons. These may include placement on the retired list, honorable discharge from service, and transfer to another part of the reserve.
- Military Spouses: You may also qualify for a VA loan if you are a military spouse. But specific requirements must be met. For example, you must prove that the service member you are married to is deceased, a prisoner of war, or officially recognized as missing for at least 90 days.
So, if you are one of the people mentioned above, you may have a better chance of getting a VA loan approval. But, if you want to prove your eligibility to your lender, you need certain documents showing the length and type of service you have. These documents are known as the Certificate of Eligibility. You can get a copy of this document from the US Department of Veterans Affairs, or you can ask your lender for help.
There are many lending institutions that not only offer affordable VA loans but also quality customer service to all of their customers. So, if you are looking for a reliable lender, you can check sites like securityamericamortgage.com.
- Know if your income is stable
To find out if you qualify for a VA loan, you need to determine if you have a stable income. Although there are no specific income requirements to qualify for this loan, your lender will probably want to know if you can make the new mortgage payments and pay your monthly fees.
Plus, in some cases, your lender will also look at your residual income. It is the amount of money left over each month after deducting all necessary expenses, including the mortgage payment. When you show that you have residual income, you give your lender the assurance that you can cover emergency expenses without depleting your savings. This situation can help you become more eligible for a VA loan to cover your house purchase.
- Check your credit score
Another way to find out if you qualify for a VA loan is to check your credit score. Before you can get approved for a loan, the lender will review your credit score and determine if you are a subprime borrower. Although credit score requirements differ from lender to lender, most VA loan providers require a score of at least 620 for you to be eligible.
Therefore, if you have a credit score below 620, the lender may not be able to offer you a loan. But, if your credit score is 620 or higher, the lender may find you eligible for a VA loan. To ensure you are qualified before taking out a loan, check your credit history with major credit reporting agencies to see if you have a good enough credit score to get a VA loan approval.
Applying for a VA loan to help you buy a new home doesn’t have to be difficult. As long as you know you qualify, you can get the mortgage you need. Therefore, if you are planning to take out a VA loan soon, keep the information mentioned above to know if you meet the eligibility requirements.