If you want to purchase a home with a mortgage loan, have you started looking at your loan options? Mortgage loans come in many types, and one option is a VA loan. A VA loan is offered through most lenders, but it is the only type of mortgage that the Department of Veterans Affairs supports and backs. If you would like to learn more about these loans, it might be helpful to start by finding out what it takes to qualify for one. Here are some of the basic guidelines for VA loan eligibility.
VA loans are only available to people who have military experience. You can get one if you are currently serving in the military, but you can also get one if you served in the military in the past. You must prove your military experience by obtaining a Certificate of Eligibility (COE) through the VA. The purpose of the VA loan program is to provide a way for veterans to become homeowners. If you have experience in the military, you can apply for a VA loan. Your military experience is not the only eligibility requirement, though.
Secondly, you must have enough income to repay the loan. If you want to get any mortgage loan, you must prove that you can repay the loan. Therefore, if you plan to apply for a VA loan, be prepared to prove that you can pay the loan. The lender you choose will ask you for pay stubs and tax returns for this purpose. The lender will evaluate them to see how much you can afford to pay, and this is how the lender determines your maximum loan amount.
The Department of Veterans Affairs does not set a structure for credit score requirements. Instead, lenders set their own score requirement structures. Most lenders require credit scores of 660 or higher. If you have a lower score, you might qualify for the loan, but you may need a larger down payment.
You can finance 100% of a VA loan, including the closing costs. Therefore, you do not need a down payment to get the loan. If you have a down payment, though, you will save money on the closing costs. Providing a down payment reduces the costs of the mandatory funding fee.
If you have questions or want to apply for a VA home loan, contact a mortgage lender today.
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