Granted by the US Department of Veterans Affairs, the VA Loan remains one of the top loan options for veterans and active military members who don’t have enough money to buy a home. Perhaps, it is because getting a VA loan approval is somewhat easier than going through the application process of conventional mortgages. The Department of Veteran Affairs, after all, is not a direct lender. You can get this kind of loan as long as you meet the following guidelines, as advised by a top VA loan company:
1. VA Eligibility
To be eligible for a VA loan, you must have completed the minimum service requirements. If you’re an active duty member, you are only eligible after you’ve rendered at least six months of service. If you’re a National Guard member or a Reservist, you have to wait six years before you can apply, unless you get called to duty.
2. Property Eligibility
The VA only guarantees certain types of properties, which includes single-family homes, townhouses, multi-family homes, and VA-approved condos. Manufactured or modular homes are only eligible if they are on a permanent foundation.
3. Owner Occupancy
To get approval, you must verify that you will occupy the home you want to finance. Some lenders may require living the property within 60 days after closing. But, if you’re away from home, you may likely receive an extension of up to one year. If you have a spouse, they can meet the occupancy requirement on your behalf.
4. Reasonable Debt-to-Income Ratio
Even if you’re eligible for a VA loan, you won’t likely get approval if you have a high debt-to-income ratio. Lenders need to know that you have ample and stable income, as well as satisfactory credit, to repay the loan. As such, you must have no more than 41% debt-to-income ratio to increase your chances of getting improved.
Lenders may set other qualification requirements, but these four above are the most basic and crucial requirements you need to meet to obtain VA loan approval. If you’re uncertain about your requirements, don’t hesitate to ask for assistance from loan professionals.