Do I Qualify for a VA Loan?

If you’re a veteran, you’ve likely wondered, “Do I qualify for a VA loan?” That’s a great question, considering veteran loans require no down payment. And they save you big on loan origination fees and closing costs, too.

Surprising fact: 80% of the U.S. veteran population own homes but only 13% used their VA loan benefit.

Settle your curiosity about who qualifies for a VA loan. But never settle for just any home loan. Stick around and learn if you qualify for a VA loan based on your veteran status. 

What Is a VA Loan?

The Veterans Affairs (VA) home loan originated in 1944 to assist military returning from World War II. VA home loans exist for anyone with a military affiliation. This includes veterans, active-duty personnel, and eligible surviving spouses. 

Private lenders issue VA loans guaranteed by the government. Backed by the Department of Veterans Affairs, VA home loans come with protections. Such as those provided by lenders if you default on the loan.

You can choose from different VA loan options based on certain qualifications. And you can choose from several types of homes to buy with a VA loan, including:

  • Single-family home
  • Qualified condo
  • Multi-unit property with one unit as your primary residence
  • Lot or manufactured home

You can also refinance your current mortgage or upgrade your primary home using a VA loan. 

Requirements to Qualify for a VA Loan

Veterans and active-duty personnel must meet a minimum service requirement to qualify for a VA loan. Under most circumstances, it’s at least 90 days. But it’s best to confirm specific time requirements depending on when you served. 

Several exceptions apply, including early discharge due to a service-related disability.  But anyone dishonorably discharged can not qualify for a VA home loan.

Prior to applying for a VA loan, you must obtain a Certificate of Eligibility (COE). A COE lets your lender know you qualify for the loan.

Aside from getting your COE, you should also check your credit score. The VA doesn’t set a minimum score requirement. But your lender may look for a FICO score of 620. 

Benefits of a VA Home Loan

As mentioned earlier, with a VA loan you’re not required to submit a down payment. But here are some other benefits of a VA home loan:

  • Competitive interest rates
  • Limited closing costs
  • No Private Mortgage Insurance (PMI)

And you can use a VA loan as many times as needed, for the rest of your life. But you may need to sell the first VA loan home before buying another. Or you can repay the first loan if you wish to keep that home and buy a new one.

A third option for getting a VA loan second home exists if you have difficulty selling your first home. 

How to Qualify for a VA Loan

Whether you qualify for a VA loan shouldn’t remain a mystery. Check your VA status to understand the service requirements to receive your VA loan benefits. And remember, qualifying for a VA loan with bad credit isn’t impossible. 

Don’t rack your brain with questions about life’s complexities. Explore our website for the answers you need. 

By Malik