If you’re working with a mortgage broker in El Paso, TX, to find the best interest rates, you’ll learn about different types of home loans. For military veterans and active service members, VA home loans are excellent options due to their lower closing costs and lenient down payment requirements.
Here, we at Champions Mortgage Team explain how to qualify for a VA loan.
Who Can Get a VA Home Loan?
If you want to learn how to qualify for a VA loan, the first thing you should understand is that eligibility is contingent on service history. For instance, active-duty personnel must have a minimum of 90 days of continuous service. National Guard and Reserve members have the same requirement if they served between August 2, 1990, and the present day.
Veterans who served during specific dates, such as June 27, 1950, to January 31, 1955, or August 5, 1964, through May 7, 1975, also have a 90-day service requirement. Those who served from August 2, 1990, to the present day need at least 24 continuous months of service or 90 days if called into active duty.
What Happens if You Don’t Meet Minimum Service Requirements?
Sometimes, military personnel don’t meet basic service requirements to qualify for VA loans outright. In that case, the circumstances of their discharge must meet one of the following criteria:
- Hardship
- Early out after serving 21 months of a two-year enlistment
- Specific medical conditions
- Involuntary reduction in force
- Service-related disability
Essential Requirements for VA Loan Eligibility
As you learn how to qualify for a VA loan, remember these financial requirements:
- Income: Lenders typically have their own income requirements, but they will require proof.
- Debt-to-income ratio: Ideally, VA loans require a debt-to-income ratio of 41% or less.
- Credit scores: The federal government doesn’t have minimum credit score requirements, but lenders sometimes do. The average minimum credit score ranges from 620 to 670.
- VA funding fee: VA loan borrowers must pay a one-time fee at closing to help cover the program’s costs.
How To Verify Your Home Loan Eligibility
In addition to meeting VA home loan eligibility requirements, you’ll also need a Certificate of Eligibility (COE) for eligibility verification. It confirms your benefits status with your lender. You may not need to pull your COE before applying for the loan because your lender can request it using your date of birth and social security number.
Utilize Your VA Loan With Help From Champions Mortgage Team
Knowing how to qualify for a VA loan and understanding the VA loan process can be difficult without expert assistance. At Champions Mortgage Team, we have years of experience helping Texas residents find the best home loans for their situation. We offer personalized solutions and fast closings, so contact Champions Mortgage Team in El Paso at (281) 727-2500 to get started.
Frequently Asked Questions About VA Loans
For more details about VA loans, credit score requirements, and essential information, review our answers to common questions.
Do VA Home Loans Have Downsides?
Possible downsides of VA home loans include occupancy requirements, closing costs, and higher property requirements.
Can I Qualify for a VA Home Loan if I Received a Dishonorable or Bad Conduct Discharge?
Part of knowing how to qualify for a VA loan is understanding that dishonorable, other than honorable, and bad conduct discharges make most veterans ineligible for this home loan. However, you may apply for a discharge upgrade to improve your chances of qualifying.
Can Surviving Spouses Get Their Partner’s COE?
As a surviving spouse, you may obtain a COE if your spouse is active-duty and is missing in action or a prisoner of war. You may also get the documentation if you’re eligible or receiving certain kinds of VA Dependency and Indemnity Compensation.
