Eligibility Requirements for VA Mortgages
In order to be eligible for a VA Mortgage, Veterans, active duty service members, National Guard members and reservists must meet the basic service requirements set forth by the Department of Veterans Affairs. Spouses of military members who died while on active duty or as a result of a service-connected disability may also be eligible.
It’s ultimately up to the VA to determine eligibility for the home loan program, but prospective home buyers can get a good idea by looking at the VA’s basic eligibility guidelines.
- You have served 90 consecutive days of active service during wartime,OR
- You have served 181 days of active service during peacetime,OR
- You have more than 6 years of service in the National Guard or Reserves,OR
- You are the spouse of a service member who has died in the line of duty or as a result of a service-related disability.
Obtaining your Certificate of Eligibility (COE)
While you don’t need your VA Certificate of Eligibility in hand to start the loan process with Eagle Home Loans, this certificate is a very important part of your loan application. Your COE verifies that your length and character of service make you eligible to use the VA home loan benefit.
You can ask your Eagle Home Loans mortgage loan officer to obtain your COE on your behalf. Talk to a fellow Veteran today to obtain your certificate of eligibility. The process takes minutes to complete with proof of your military service and ensures your home financing moves forward without delays.
If you prefer to do the work yourself, VA Loan applicants can contact the Veterans Administration directly and fill out a Certificate of Eligibility (VA Form 26-1880).
VA Loan Income Requirements
Veterans interested in the VA Loan aren’t required to have a minimum income to use their home loan benefits; however, Veterans are expected to have stable, reliable income that will cover monthly expenses – including their new mortgage payment.
Additionally, the VA requires that Veterans maintain a certain amount of income left over each month after all major expenses are paid. The excess is meant to cover typical family needs, such as food, transportation, this is called residual income. Residual income is a large reason why the VA Loan maintains one of the lowest foreclosure rates of all mortgage loans available to consumers.
By enforcing residual income requirements, the VA increases the chances of its the Veteran earning sufficient income to meet all financial obligations, and also ensures Veterans have a cushion in the event of an emergency.
Additional Eligibility Requirements
Although the VA determines the guidelines for those who are eligible for the VA Loan benefit, private lenders who finance the home purchases have an additional set of criteria a potential Veteran Home Purchasor must satisfy, including debt, income and credit requirements
When you apply for a VA Loan, your Mortgage Specialist from Eagle Home Loans will pull your credit score from the three leading credit bureaus, as well as looking at your debt to income ratio.
Finally, a Veteran applying for a VA Loan must not have been discharged under dishonorable conditions.