Good news for veterans that have served in the U.S military. Veterans and eligible surviving spouses can now receive 100 percent financing on home loans backed by the U.S Department of Veteran Affairs with no down payment. VA home loans are provided by private lenders, such as banks and mortgage companies.
VA Loan Details
- You can receive financing for up to 100 percent of the home’s value. You can check exact VA loan limits by visiting the VA website here.
- Veterans can potentially finance a vast amount of the closing costs, including credit reports, appraisals, title insurance, lender origination fees, recording fees and survey fees.
- No penalty if you pay off the loan early.
- Save hundreds of dollars per month by not being required to have mortgage insurance.
So who exactly is eligible to receive a VA home loan? Although it is beneficial to work closely with a VA loan specialist to answer this question, the Department of Veteran Affairs outlines who qualifies for a home loan. Keep in mind, you will have to provide your lender with a Certificate of Eligibility for verification.
VA Loan Eligibility
To get approved for a VA home loan, the recipient must be one of the following:
- A veteran
- An active duty service member
- A current or former National Guard or Reserve member who has been activated for federal active service
- A current National Guard or Reserve member who has never been activated for federal active service
- A discharged member of the National Guard or Selected Reserve who has never been activated for federal active service
- A surviving spouse receiving Dependency & Indemnity Compensation (DIC) benefits
- A surviving spouse who isn’t receiving DIC benefits
VA Loan Approval Process
The VA loan approval process is very similar to the non-VA home loan process. Your lender will want to compare your debt, income and housing cost. They will also be interested in your credit score. A credit score of 620 is usually required to qualify for a VA loan. Also, be sure to let your real estate agent know that you will be getting a VA loan.
For more information on home loan approval tips, check out our latest article “Home loan approval tips for homebuyers.”
