VA Home Loan Requirements

 How To Get A VA Mortgage

From Application To Closing / VA Home Loan Requirements

 

 VA Home Loan Requirements: Credit Requirements

The Va doesn’t require a minimum credit score for approval but most banks will
require at least a 620 credit score because most secondary market investors
require that before they will purchase the loan on the secondary market. Some
banks will look to see if there are any circumstances that have caused the lower
credit score, and if they deem it not to be a risky concern they may manually
underwrite the loan and approve it as long as it stills stays within VA guidelines.

There is nothing in the va home loan requirements that would stop them from doing a manual underwrite, just remember it’s important to disclose any issues up front and be prepared to address those issues in writing.

 

VA Home Loan Requirements: Benefits

Serving our country is commendable and those individuals who do so should be
allotted certain privileges. In turn, the government has made the home buying or
refinancing process troublesome-free for veterans:
• Available to active military members, veterans and qualified surviving
spouses
• No Down Payment! (Can Finance 100% Of Purchase Price Plus VA Funding Fee)
• No Mortgage Insurance required (Saves You 1,000’s Long Term)
• Easier Qualifying Standards Including A Higher Debt To Income Ratio (A
great example would be a family gross income of $50,000 applying for a VA loan
to purchase their home will qualify for a payment of about $209 more than
someone applying for a conventional loan. They will also have more house for
their money since there want be any PMI built into the payment).
• Low VA Loan interest rates, due in part these loans are insured by the
federal government.
• A Loan That Is Assumable By Veterans Or Non-Veterans And Free
counseling is available from the VA in case of financial difficulties.
With all new home purchases an “escape clause” is required as safety margin for
the VA loan applicant. This clause protects the buyer from being obligated to a VAva loan application
mortgage loan when the appraised value of the home doesn’t match the selling
price. I cover this in more detail in my FREE 15 Page Quick Guide.

VA Home Loan Requirements: Funding Fee

What Is The VA Funding Fee And Who Is Exempt
The VA Funding Fee is part of the va home loan requirements and ranges from 2.15% to 3.3% of the loan amount on
purchases and .5% to 3.3% of the loan amount on refinances. The
following table breaks down how the VA Funding Fee is determined.
For Purchases

Type of Veteran                Down Payment              1st Time Use         Subsequent Use

Regular Military                     None                             2.15%                     3.30%

                                           5% to 10%                      1.50%                     1.50%

                                          10% or More                     1.25%                     1.25%
Reserves / National               None                             2.40%                     3.30%
Guard                                  5% to 10%                      1.75%                     1.75%

                                           10% or More                     1.50%                     1.50%

For Cash Out Refinances
Type of Veteran                1st Time Use                Subsequent Use
Regular Military                   2.15%                            3.30%
Reserves / National             2.40%                            3.30%
Guard

*For those with a VA loan who are refinancing simply to lower their
interest rate, the VA Funding Fee is only .5% if you aren’t exempt.
While there is a funding fee for a VA home loan, some veterans are
exempt.

*If you are a veteran getting disability compensation for service related
medical issues or are entitled to get compensation if you aren’t
drawing retirement pay, you are exempt from the VA funding fee for your VA home loan.

VA Home Loan Requirements: Disabled Veterans

The one great thing the VA has done for their disabled veterans is the VA funding is waived from the VA home loan requirements saving the veteran sometimes several thousand dollars which also translates into a lower monthly house payment.

VA Home Loan Requirements: Closing Cost

Even though there are closing cost involved with your home purchase the average veteran can usually get a deal done with little or even zero out of pocket. I cover this in more detail in my FREE 15 Page Quick Guide. VA Home Loan Requirements

Loan Origination Charge (Usually 1%)
• Credit Report Fee
• Doc Stamp
• Survey Fee
• State Tax or Intangible Fee
• Title Insurance and Title Examination
• Flood Certification
• Appraisal
• VA Funding Fee (Can Be Financed) (Disabled Veterans Are Exempt)
• Pre-Paid Interest For The Following Month’s Payment You Will Be Skippingprequalify for a va home loan
• An Escrow Account Will Also Have To Be Built For Taxes And Insurance

VA Home Loan Requirements

This article should give you a good basic understanding of the VA home loan requirements from understanding the credit qualifications to the VA funding fee and an idea what items are involved in the closing cost. I give  more detailed instructions in my FREE 15 Page Quick Guide. Please feel free to download or print so you have the information you need as you complete your research on buying your new home.
Pingates

article spinning technology precisely for the wordpress user.