6 Requirements to Qualify for VA Loans

The Veterans Administration (VA) is a federal agency that provides veterans and active duty personnel with unique home loan perks. VA loans are among the most prevalent home mortgages in the United States—many people are attracted to them because they’re backed by the federal government. Connect with Atlantic Home Capital if you’re looking for a VA loan.

When an applicant is unable to obtain a traditional mortgage, a VA mortgage loan may be available. VA loans have numerous advantages compared to conventional home loans. These loans are suitable for veterans and military personnel, as well as the living families of departed service members because they offer flexible income restrictions.

In this blog, we’ll explain the requirements for getting a VA loan from the government.

Requirements for VA Loans

1. Getting the Certificate of Eligibility (COE)

Making sure you’re eligible for a VA loan is the first step. The process to determine your eligibility for the loan is crucial. VA loans are designed to assist those who have served in the US military in purchasing a home. Others may also be eligible. To apply for VA loans, you must meet specified conditions regarding your service, release, and handicap.

There’s only one way to find out if you’re eligible for a COE: apply, fill out VA Form 26-1880, send the signed form, as well as originals or acceptable copies of your latest discharge documents, DD 214 or DD Form 214, Certification of Discharge or Release from Duty, to the address mentioned.

There are multiple ways of applying for COE, including online applications and applications sent via mail. If you’re confused or have any questions, you can contact the official VA home loan contact information center for any kind of information.

 

2. Making Sure Your Property is VA Eligible

VA loans offer you more options when it comes to the type of home you buy, the changes you want to make to your current home, and the kinds of residential mortgages you can qualify for.

There are three ways to get VA-guaranteed financing:

• Build or Buy a House

You have the option of building a brand-new home or purchasing an existing one. The VA must authorize the home in the event of a condominium.

• Improvements to Your Existing Property

You can make improvements to the property you currently own. VA financing can cover the cost of installing energy-saving systems like solar heating, air conditioning, or both. Purchases of modular houses and land are eligible for VA loans. You can even purchase and upgrade the land where your modular home is situated.

• Refinance Loans

Paying off your existing mortgage and other liabilities on your house with a VA loan or refinance an existing mortgage.

If the house you want to buy or renovate meets these criteria, the next move is to see if your current situation meets the VA’s criteria. Your purchase must be made in the US or one of its islands or territories, which include the Virgin Islands, Guam, Puerto Rico, Mariana Islands, and American Samoa.

3. Contract to Purchase a Property for its Market Value

The VA’s Minimum Property Requirements (MPRs) must be met by your home. The VA restrictions are vast, but the bottom line is that the residence must comply with local building ordinances, government rules, and HUD standards for building accessibility and safety. To be classified as residential real estate, the residence must be completed and possess all necessary services and utilities.

A Compliance Evaluation will be ordered by your lender to see if the building satisfies the basic criteria. An assessment of the building’s market value is not the same as this inspection.

 

4. Show that You Intend to Live in the House

The VA prefers that borrowers live in their homes. In other words, the VA doesn’t want the veterans to be using their mortgage benefits to purchase rental properties. As a result, the borrower must either reside in the house for at least some amount of time in the year.

5. Prove Your Income

The two most essential things that the VA examines are income and employment. Lenders want to know that your income is reliable, documented, permanent, and adequate, regardless of where it comes from: a job, a trust, an asset or investments, or perhaps another source. Sufficient income entails being able to pay your mortgage, cover ownership fees, and meet your family’s various responsibilities and expenses while still having enough money to sustain your family.

• Full-Time Employment

Do you have a job that requires you to work at least thirty hours a week? This amount of hours is considered being employed full-time by the VA, which enables you to apply for VA loans. VA lenders additionally consider how long you’ve been working as a sign of whether you’d be able to make your monthly payment and pay back the debt over time. A consistent employment history shows the lender that you are responsible and trustworthy.

• Business Owner

If you own a business or a company, the lender will verify your revenues and net income by reviewing your latest income tax filings. The 2-year benchmark appears. The lender will seek a minimum of two years of consistent payments. A year-over-year increase in revenue is beneficial to you. Interest, dividends, disability, retirement, or pension payments may also count, but only if you can show you’ve been getting them for the past two years.

• Part-time Work

A part-time job can help you qualify for a VA loan by boosting your income. If you’ve worked at least two years in a part-time job, your lender may consider it, and it could come to your advantage. In the end, your lender wants to know if you’ll stay in that position.

6. Debt to Income Ratio

Your debt-to-income ratio (DTI) is the proportion of your total income for a month that goes toward paying loans and debts, including housekeeping, credit card payments, auto loans, and other daily expenses. The smaller your DTI, the higher your chances of getting a VA loan.

The VA loans in Ft Lauderdale offer 100% financing, making it easier to get your dream home! At Atlantic Home Capital, we would love to help you with any housing needs that you may have. If you’re interested in learning more about how these loans work or want to speak with someone about other options like FHA loans in Ft Lauderdale or modular mortgage loans in NY, contact us today.