Direct VA Loans

VA Loan Approval Requirements

The Veteran Home Loan Guaranty program was first instituted in 1944. The purpose behind the loan program was to ease the adjustment of postwar economic problems for the millions of veterans serving the armed forces. Helping returning war veterans become homeowners was just one of many VA benefits that was offered back then. Today, while some changes to the VA Loan program have been made, the original mission remains the same: to assist veterans in owning and keeping their homes.

The law requires VA borrowers to meet the following five basic criteria to obtain a home loan backed by the U.S. Department of Veterans Affairs:

  • Applicant must be an eligible veteran with available loan entitlement

  • The loan has to be used for an eligible purpose as defined by the VA.

  • The home must be occupied or the veteran must intend to occupy the home within a reasonable amount of time after loan closing.

  • The applicant must have a good credit record and not present a credit risk.

  • The income of the veteran must be enough to make the mortgage payments, other associated home costs, living expenses and family support.

VA Home Loans Are a Benefit For Serving Our Country

Veterans, active duty, Reservist/National Guard members, surviving spouses and certain other groups may be eligible for VA loans. VA home loans are a benefit for those who have served and sacrificed for our country.

Part of eligibility is the home being considered for VA financing. Single family, multi-family, townhomes, approved-condominiums and some manufactured homes may qualify for VA mortgage financing provided they meet guidelines established by the Department. Properties must undergo VA appraisals before they are deemed safe to live in and appropriately priced.

Home Financed with VA-Guaranteed Loans Must Be Used as Primary Residences

VA requires properties financed with VA-guaranteed loans to be primary residences no matter what type of home is selected by the VA borrower. Veterans and other eligible borrowers must certify that they will occupy the property. Active duty members stationed away may have a spouse or dependent satisfy the occupancy rule with proper certification.

Of course, before getting a VA home loan, certain credit and income qualifying requirements must be met. The VA puts forth certain guidelines for lenders to follow. The guidelines have to do with debt-to-income ratios, residual income. No minimum credit score is established in the guidelines, but lenders may have their own requirements for VA mortgage qualifying. The bottom line is that borrowers must have the ability to pay for their loans and lenders are given flexibility to determine qualification.

Your specialized VA lender will be able to assist you with understanding the specific income and other qualifying requirements to obtain your home loan.

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