The department of veteran affairs has arrangements in place to cater to military personnel regarding the buying of homes and access to loans at a lower rate. The VA home loan benefits both veterans and those in service who meet the minimum requirements laid down by the department. Different types of loans are availed, and one ought to know which one best suits their needs. Important to note is that the credits are not given by the department only. Other lenders are brought on board to help reach a more extensive breadth of military personnel and their spouses.
Before applying for a VA loan is intricate to know what is required of you to make the process seamless and faster. Below we highlight some of the requirements that one must meet to be eligible for any VA loan.
- Time served
To qualify for a VA loan, one must have served for a specific duration. One must have served for ninety consecutive days in war or one hundred and eighty-one days in times of peace. For national guards and those manning reserves, a minimum of six years in service is required for any VA loan to be advanced to them. Additionally, spouses of service members who have died in the line of duty are allowed to seek VA loans. This requirement is crucial and one who has not served for any of the durations listed above is not eligible for a veteran’s loan.
- Veterans loan certificate of eligibility
This requirement is not a must, but it makes access to VA loans easier and painless. The certificate for qualification lets your lender know that you qualify for a VA loan. Lenders have access to the COE database and they can pull the documentation anytime they require it which is why it is not a requirement to bring along with you. You can get this cert through a VA approved lender or you can apply for it online on the eBenefits portal. Also, an email request using form 26-1880 can be sent to VA and the certificate will be processed and sent to you.
Proof of service is needed to process your certificate of eligibility. For military spouses, getting this certificate is dependent on whether you are receiving indemnity and dependency compensation. If you are not receiving it, you are required to follow the necessary procedures and submit your request to the VA pension management center. A copy of the marriage license and the veteran’s death certificate are a must-have for the COE to be processed.
- Credit score and income requirements
Lenders require veterans to have a specific credit score while the department controls residual income requirements. Most lenders require a minimum of 620 mortgage credit score but this figure is not constant. Check out the minimum credit score required by various institutions and pick one that works for you. The department of veteran services requires borrowers to retain a certain amount out of their income to cater tho everyday needs.