VA mortgages or VA loans as they are popularly known, allow veterans and people actively serving in the US military to get a loan partially guaranteed by the US Department of Veteran’s Affairs (VA). The loans help qualifying persons to purchase a new home or refinance a VA loan.

The VA maintains a select criteria for VA loan eligibility. On top of that, private lenders may have their own requirements for loan approval. Applicants for VA loans should start by familiarizing themselves with the qualification requirements. Talk to a San Diego mortgage company for more information.

To Be Eligibility for VA Loans, You Must Meet a Number of Requirements

• VA Requirements. VA loans are available to most military members, including active servicemen, reservists, veterans and members of the National Guard. Active service members usually qualify after six months of service while reservists and National Guard members qualify after 6 years or, if they are summoned to active duty, after 181 days during peacetime or 90 days during wartime. Spouses of military members who died in active duty or from disabilities related to active duty also qualify. So do veterans receiving disability benefits. For veterans, their discharge should not be dishonorable.
• Debt-To-Income Requirements. ctive service is not the only requirement for qualifying for a VA loan. For example, the VA requires applicants to have a stable income that is sufficient to cover monthly personal and household expenses. They should also have a debt-to-income ratio of no more than 41% (the applicant’s total monthly debt repayments including student loans, car loans and the VA loan should not exceed 41% of total monthly income).
• Lender Requirements. Some lenders require applicants to have a credit score of at least 620. While this minimum credit requirement may vary by lender, it is always a good idea to clean up your credit before applying for a home loan. Qualifying persons are also required to obtain a certificate of eligibility through their lender. However, this certificate is not strictly required before a VA loan application. Most VA-approved lenders are open to getting the document in the course of the pre-approval process.
• Down Payment. Here’s the good news – qualifying persons do not have to make a down payment of any amount for VA loans.
• Fees. Although fees vary depending on the lender, they are typically lower than for other mortgages. For example, a VA loan applicant does not have to pay for private mortgage insurance. However, the borrower will have to pay a one-time VA loan funding fee of 1.25% – 3.3% of the total loan amount. Applicants who make a down payment will pay a lower fee.

If you are interested in a VA loan, contact us at (619) 692-3630 to talk with our loan experts at Community Mortgage.