VA Loans, are you eligible?

Here are the basic eligibility requirements for a VA Loan:

¨ 90 days or more active duty service during wartime

¨ 181 days or more of active duty during peacetime

¨ You were not dishonorably discharged

¨ You are active duty and meet the above requirements

¨ You are the surviving spouse of a veteran who died during service or 

    because of service-related injuries and you have not remarried

(If you're a reservist, you will need six years of service and an honorable discharge - OR - if you've been deployed for 90 days or more in a combat zone, then you will be eligible for a VA Loan)

Alright, so we have established that you are eligible, but now comes the next question – Do you Qualify for a VA Loan? If you are confident that you'll have no problem qualifying for a VA Loan, then the next step is to get your Certificate of Eligibility, which you can obtain from the VA or your VA Loan Officer can obtain one for you as well. Credit You don't have to have great credit to qualify for a VA Loan. Lenders will vary on what they are looking for credit score-wise, but most require a 620 minimum score. Lenders are going to look at your last 12 months to make sure you've been timely with all your payments as well. One late payment won't disqualify you, but lenders want to know you are on top of your credit.  Income The VA wants you to not only have enough money to make your mortgage payment each month, but they want you to have money left over after everything has been paid as well. This is called your residual income and there is a minimum requirement depending upon your location and family size.  Employment The VA likes it when you are employed - it makes you an attractive borrower when they know you have steady income and it's been that way for 2 consecutive years. There are circumstances where VA will allow for less than 2 years, but you will need a good explanation and documentation to support it.  Bankruptcy If you've had one - don't fret, it's not the end of your VA quest - you just have to wait. VA requires that you're two years removed from a Chapter 7 Bankruptcy discharge and 1 year removed from a Chapter 13 discharge. Also, VA requires that you've had no late payments while paying off a Chapter 13 Bankruptcy. *If you are confident that you'll have no problem qualifying for a VA Loan, then the next step is to get your Certificate of Eligibility, which you can obtain from the VA or your VA Loan Officer can obtain one for you as well.